At the end of Kane Department Store’s fiscal year on November 30, 2010, these accounts appeared in its adjusted trial balance.
|
Freight in |
$5,060 |
|
Merchandise Inventory (beginning) |
$42,200 |
|
Purchases |
616,000 |
|
Purchase Discounts |
7,000 |
|
Purchase Returns and Allowances |
6,760 |
|
Sales |
904,000 |
|
Sales Returns and Allowances |
20,000 |
Additional facts:
1. Merchandise inventory on November 30, 2010, is $36,200.
2. Note that Kane Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended November 30, 2010.