At the end of Rutherford Department Store’s fiscal year on December 31, 2012, 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, 2012, is $65,000.
2. Rutherford Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2012.