At the end of Apex Department Store’s fiscal year on December 31, 2014, these accounts appeared in its adjusted trial balance.

Freight-In ................................................... $ 5,600

Inventory .................................................... 40,500

Purchases .................................................442,000

Purchase Discounts .................................. 12,000

Purchase Returns and Allowances ........... 6,400

Sales Revenue .........................................718,000

Sales Returns and Allowances ............... 18,000

Additional facts:

1. Merchandise inventory on December 31, 2014, is $65,000.

2. Apex Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended December 31, 2014.