At the end of Dayton Department Store’s fiscal year on November 30, 2014, 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, 2014, is $52,600.

2. Dayton Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended November 30, 2014.