At the beginning of November, Donkey Inc.'s inventory consists of 50 units with a cost per unit of $100. The following transactions occur during the month of November. November 2 Purchase 80 units of inventory on account from Kong Inc. for $110 per unit, terms 2/10, n/30. November 3 Pay freight charges related to the November 2 purchase, $240. November 9 Return 20 defective units from the November 2 purchase and receive credit. November 11 Pay Kong Inc. in full. November 16 Sell 100 units of inventory to customers on account, $14,000. [Hint: The cost of units sold from the November 2 purchase includes $110 unit cost plus $4 per unit for freight less $2.20 per unit for the purchase discount, or $111.80 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 70 units of inventory from Kong Inc. for $120 per unit, terms 1/10, n/30. November 24 Sell 50 units of inventory to customers for cash, $9,000. Required:

3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment for lower of cost and net realizable value.

DONKEY INC.
Multiple-step Income Statement (partial)
For the month of November