Garfunkle Company had the following four transactions during January 2017: January 3 Purchased 200 hair dryers from Hot Aire Corporation for $30 each, terms n/30. 5 Sold 50 hair dryers purchased on...

Lindsey Corporation had the following account balances:
Sales revenue $200,000
Beginning inventory 40,000
Purchases 80,000
Purchase discounts 3,000
Freight-in 1,000
Ending inventory 30,000
Purchases returns and allowances 2,000
Given the information above, and assuming that Lindsay's total operating expenses (exclusive of the cost of goods sold) are $40,000, pretax income is
a. $114,000
b. $110,000
c. $46,000
d. $74,000

Extracted text: Garfunkle Company had the following four transactions during January 2017: January 3 Purchased 200 hair dryers from Hot Aire Corporation for $30 each, terms n/30. 5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30. 15 Returned five of the hair dryers purchased on January 3 because they were defective. 22 A customer returned two hair dryers purchased on January 5 because they were defective. Given the information above, with the perpetual inventory system, the entry to record the January 15 transaction would include a Oa. credit to inventory of $150. Ob. credit to purchase returns of $150. Oc. debit to purchases of $150. Od. credit to purchases of $150.