At the end of Donaldson Department Store’s fiscal year on November 30, 2020, these accounts appeared in its adjusted trial balance.
Freight-In ..................................................$ 7,500
Inventory ...................................................40,000
Purchases ...............................................585,000
Purchase Discounts ...................................6,300
Purchase Returns and Allowances ..........2,700
Sales Revenue .....................................1,000,000
Sales Returns and Allowances ...............20,000
Additional facts:
1. Merchandise inventory on November 30, 2020, is $52,600.
2. Donaldson Department Store uses a periodic system.

Instructions
Prepare an income statement through gross profit for the year ended November 30, 2020.