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

Freight-In $ 7,200 Inventory (beginning) 40,500 Purchases 456,000 Purchase Discounts 12,000 Purchase Returns and Allowances 6,400 Sales Revenue 702,000 Sales Returns and Allowances 8,000 Additional facts: 1. Inventory on December 31, 2014, is $48,300. 2. Note that Alma’s Department Store uses a periodic system.

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

AppendixLO1