Question & Answer: Use the following financial information to find the entry you would make on an income statement for NET I…..

Use the following financial information to find the entry you would make on an income statement for NET INCOME (LOSS) for the year ended December 31, 2008: Gross sales, $152,000; sales returns and allowances, $8,300; sales discounts, $2,800. Merchandise inventory, Jan. 1, 2008, $56,800; merchandise inventory, Dec. 31, 2008, $87,400; net purchases, $52,500; freight in, $950; salaries, $95,300; rent, $15,400; utilities, $1,500; insurance, $2,475; and income tax, $14,650. Use parentheses to show a loss.