At the end of Dayton Department Store”s fiscal year on November 30, 2014, 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

20,000

Sales Returns and Allowances

Additional facts:

1. Merchandise inventory on November 30, 2014, is $52,600.

2. Dayton Department Store uses a periodic system.

Instructions

Prepare an income statement through gross profit for the year ended November 30, 2014.

Gross profit $409,100