E3-13B (Closing Entries) The adjusted trial balance of Guevara Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2014:

E3-13B (Closing Entries) The adjusted trial balance of Guevara Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2014:

Sales            $320,000                      Sales Returns and Allowances   $9,600

Freight-out      $4,800                      Sales Discounts                        $6,000

Instructions

(a) Prepare the sales revenues section of the income statement.

(b) Prepare separate closing entries for (1) sales, and (2) the contra accounts to sales.