At the end of Duckworth Department Store’s fiscal year on November 30, 2010, these accounts appeared in its adjusted trial balance.
Freight-in............. $ 4,500
Merchandise Inventory...... 40,000
Purchases............ 585,000
Purchase Discounts......... 6,300
Purchase Returns and Allowances.. 2,700
Sales............... 810,000
Sales Returns and Allowances..... 18,000
Additional facts:
1. Merchandise inventory on November 30, 2010, is $32,600.
2. Note that Duckworth Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended November 30, 2010.