At the end of Ermler Department Store’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance.

Freight-In $ 5,060 Inventory (beginning) 41,300 Purchases 613,000 Purchase Discounts 7,000 Purchase Returns and Allowances 6,760 Sales Revenue 902,000 Sales Returns and Allowances 20,000 Additional facts:

1 Inventory on November 30, 2014, is $36,200.

2 Note that Ermler Department Store uses a periodic system.

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

AppendixLO1