Which of the following statements regarding special journals is not true? a. special journals provide a specialized format for recording similar transactions. b. special journals are periodically summarized and posted to the general ledger. c. the balances in a special journal must always reconcile to the general ledger. d. special journals are used to record large numbers of repetitive transactions.

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.