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he following account balances were included in the trial balance of Twain Corporation at June 30, 2017
Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $ 7,250
Sales discounts 31,150 Bad debt expense (selling) 4,850
Cost of goods sold 896,770 Salaries and wages expense (sales) 56,260
Property tax expense 7,320 Sales commissions 97,600 
Maintenance and repairs expense (administration) 9,130
Travel expense (salespersons) 28,930 Offi ce expense 6,000
Entertainment expense 14,820 Sales returns and allowances 62,300
Telephone and Internet expense (sales) 9,030 Dividends received 38,000
Delivery expense 21,400 Depreciation expense (sales equipment) 4,980
Interest expense 18,000 Maintenance and repairs expense (sales) 6,200
Miscellaneous selling expenses 4,715 Depreciation understatement due to error—2014 (net of tax) 17,700
Income tax expense 102,000 Offi ce supplies used 3,450 
Dividends declared on preferred stock 9,000 Telephone and Internet expense  (administration) 2,820 
Dividends declared on common stock 37,000
 The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding.
 
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