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.