Sales revenue

1,578,500

Sales discounts

31,150

Cost of goods sold

896,770

Salaries and wages expense (sales)

56,260

Sales commissions

97,600

Travel expense (salespersons)

28,930

Freight-out

21,400

Entertainment expense

14,820

Telephone and Internet expense (sales)

9,030

Depreciation expense (sales equipment)

4,980

Maintenance and repairs expense (sales)

6,200

Miscellaneous selling expenses

4,715

Office supplies used

3,450

Telephone and Internet expense (administration)

2,820

Depreciation expense (office furniture and equipment)

7,250

Property tax expense

7,320

Bad debt expense (selling)

4,850

Maintenance and repairs expense (administration)

9,130

Office expense

6,000

Sales returns and allowances

62,300

Dividends received

38,000

Interest expense

18,000

Income tax expense

102,000

Depreciation understatement due to error—2009 (net of tax)

17,700

Dividends declared on preferred stock

9,000

Dividends declared on common stock

37,000