At the end of Roshek Department Store”s fiscal year on December 31, 2014, these accounts appeared in its adjusted trial balance.

Freight In

5,600

Inventory

40,500

Purchases

447,000

Purchase Discounts

12,000

Purchase Returns and Allowances

6,400

Sales Revenue

725,000

Sales Returns and Allowances

11,000

Additional facts:

1. Merchandise inventory on December 31, 2014, is $65,000.

2. Roshek Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended December 31, 2014.