The following data were extracted from the accounting records of Marcus Gallery for the year ended February 28, 2018.

Merchandise Inventory, March 1, 2017 P450,000

Merchandise Inventory, February 28, 2018 225,000

Purchases 175,000

Purchase Returns and Allowances 25,000

Purchase Discounts 10,000

Sales 680,000

Sales Returns 20,000

Transportation In 5,000

Prepare the partial income statement for the year ended February 28, 2018 using the periodic inventory system.