At the end of Gordman Department Store’s fiscal year on December 31, 2010, these accounts appeared in its adjusted trial balance.
Freight-in........... $ 5,600
Merchandise Inventory........ 40,500
Purchases........... 447,000
Purchase Discounts....... 12,000
Purchase Returns and Allowances.. 6,400
Sales............ 718,000
Sales Returns and Allowances.. 8,000
Additional facts:
1. Merchandise inventory on December 31, 2010, is $75,000.
2. Note that Gordman Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2010.