At the end of Eisenhaver Department Store’s fiscal year on December 31, 2010, these accounts appeared in its adjusted trial balance.
|
Freight in |
5,600 |
|
Merchandise Inventory (beginning) |
$40,500 |
|
Purchases |
$456,000 |
|
Purchase Discounts |
12,000 |
|
Purchase Returns and Allowances |
6,400 |
|
Sales |
707,000 |
|
Sales Returns and Allowances |
8,000 |
Additional facts:
1. Merchandise inventory on December 31, 2010, is $71,000.
2. Note that Eisenhaver Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2010.