At the end of Cortez Department Store’s fiscal year on November 30, 2012, these accounts appeared in its adjusted trial balance.
Freight-in $ 7,500
Inventory 40,000
Purchases 585,000
Purchase Discounts 6,300
Purchase Returns and Allowances 2,700
Sales Revenue 1,000,000
Sales Returns and Allowances 20,000
Additional facts:
1. Merchandise inventory on November 30, 2012, is $52,600.
2. Cortez Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended November 30, 2012.