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

Freight-In ................................................... $ 7,500

Inventory .................................................... 40,000

Purchases ................................................ 585,000

Purchase Discounts .................................... 5,300

Purchase Returns and Allowances ........... 2,900

Sales Revenue ......................................1,000,000

Sales Returns and Allowances ............... 28,000

Additional facts:

1. Merchandise inventory on November 30, 2014, is $54,600.

2. Stampfer Department Store uses a periodic system.

Instructions

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