At the end of Dayton Department Store's fiscal year on November 30, 2015, these accounts appeared in its adjusted trial balance.

Freight-In ..................... $ 7,500

Inventory ..................... 40,000

Purchases .....................585,000

Purchase Discounts ................. 6,300

Purchase Returns and Allowances ........... 2,700

Sales Revenue ................. 1,000,000

Sales Returns and Allowances ............ 20,000

Additional facts:

1. Merchandise inventory on November 30, 2015, is $52,600.

2. Dayton Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended November 30, 2015.