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At the end of Gordman Department Store's fiscal year on December 31, 2010, these accounts appeared in its adjusted trial balance.
Freight-in........... $ 5,600Merchandise Inventory........ 40,500Purchases........... 447,000Purchase Discounts....... 12,000Purchase Returns and Allowances.. 6,400Sales............ 718,000Sales Returns and Allowances.. 8,000
Additional facts:
1. Merchandise inventory on December 31, 2010, is $75,000.
2. Note that Gordman Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2010.
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