The following selected accounts from the Blue Door Corporation’s general ledger are presented below for the year ended December 31, 2025:
Advertising expense
$ 55,000
Interest revenue
$ 30,000
Common stock
250,000
Inventory
67,000
Cost of goods sold
1,085,000
Rent revenue
24,000
Depreciation expense
125,000
Retained earnings
535,000
Dividends
150,000
Salaries and wages expense
675,000
Freight-out
25,000
Sales discounts
8,500
Income tax expense
70,000
Sales returns and allowances
41,000
Insurance expense
15,000
Interest expense
70,000
Sales revenue
2,400,000
Instructions
Prepare a multiple-step income statement.
Prepare cost of goods sold section using periodic system.