(Solution) - The adjusted trial balance of Lopez Company shows the following -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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The adjusted trial balance of Lopez Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2007: Sales $800,000, Freight-out $12,000, Sales Returns and Allowances $24,000, and Sales Discounts $15,000.

Instructions
(a) Prepare the sales revenue section of the income statement.
(b) Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.