At the end of Roshek Department Store’s fiscal year on December 31, 2014, these accounts appeared in its adjusted trial balance.

Freight-In ................$ 5,600

Inventory ................ 40,500

Purchases ................ 447,000

Purchase Discounts ............. 12,000

Purchase Returns and Allowances ...... 6,400

Sales Revenue ............... 725,000

Sales Returns and Allowances ........ 11,000

Additional facts:

1. Merchandise inventory on December 31, 2014, is $65,000.

2. Roshek Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended December 31, 2014.