At the end of Ermler Department Store’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance.

Freight-In ............ $ 5,060

Inventory (beginning)........ 41,300

Purchases.............. 613,000

Purchase Discounts........... 7,000

Purchase Returns and Allowances... 6,760

Sales Revenue........... 902,000

Sales Returns and Allowances..... 20,000

Additional facts:

1. Inventory on November 30, 2014, is $36,200.

2. Note that Ermler Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended November 30, 2014.