At the end of Eisenhaver Department Store’s fiscal year on December 31, 2010, these accounts appeared in its adjusted trial balance.
Freight-in ............... $ 5,600
Merchandise Inventory (beginning) ...... 40,500
Purchases ............... 456,000
Purchase Discounts ............ 12,000
Purchase Returns and Allowances ...... 6,400
Sales ................. 707,000
Sales Returns and Allowances ....... 8,000
Additional facts:
1. Merchandise inventory on December 31, 2010, is $71,000.
2. Note that Eisenhaver Department Store uses a periodic system.

Instructions
Prepare an income statement through gross profit for the year ended December 31, 2010.