Problem: At the end of Gordman Department store's fiscal year on December 31, 2008, these accounts appeared in its adjusted trial balance...
Freight -in $5,600
Merchandise Inventory 40,500
Purchases 447,000
Purchase Discounts 12,000
Purchase returns and allowances 6,400
Sales 718,000
Sales Return and allowance 8,000
Additional facts:
1. Merchandise inventory on December 31, 2008 is $75,000.
2. Note that Gordman Department store uses a periodic system.
Prepare an income statement through gross profit for the year ended December 31, 2008.