At the end of Cortez Department Store’s fiscal year on November 30, 2012, 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, 2012, is $52,600.
2. Cortez Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended November 30, 2012.