Ray Ltd. a sport merchandising company ledger account shows following account balance at the beginning of current season on December 1, 2020. Cash $5,250; inventory $8,850; and share capital $12,600. During December, the following transactions occurred: 5 Dec Purchased golf bags, clubs, and balls on account from Balata Ltd for $5,460, FOB shipping point, terms 2/7. 7 Paid freight on Balata Ltd purchases $268. 9 Received credit from Balata Ltd for inventory returned $210. 10 Sold inventory on account, $5,040 terms n/30. 12 Purchased gold shoes, sweaters, and other accessories on account from Arrow Sportswear $1,386, terms 1/7, n/30. 12 Paid Balata Ltd the amount owed. 17 Received credit from Arrow Sportswear for inventory returned $126. 18 Paid Arrow Sportswear in full. 20 Made sales on account $3,780, terms n/30. 27 Granted credit to customers for clothing that did not fit $563. 30 Made cash sales $2,520. 30 Received payments on account from customers $2,310. 31 Closing inventory on hand was determined to be $7,820. Required: Taking into consideration the above information prepare a Statement of Profit or Loss up to gross profit stage

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