At the end of Ehlinger Department Store’s fiscal year on December 31, 2012, these accounts appeared in its adjusted trial balance.
Freight-in ........... $ 7,200
Inventory (beginning) ....... 40,500
Purchases .......... 456,000
Purchase Discounts ........ 12,000
Purchase Returns and Allowances .. 6,400
Sales Revenue ........ 702,000
Sales Returns and Allowances ..... 8,000
Additional facts:
1. Merchandise inventory on December 31, 2012, is $58,300.
2. Note that Ehlinger Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2012.