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At the end of Ehlinger Department Store's fiscal year on December 31, 2012, these accounts appeared in its adjusted trial balance:
Freight-In
$ 7,200
Inventory (beginning)
40,500
Purchases
456,000
Purchase Discounts
12,000
Purchase Returns and Allowances
6,400
Sales Revenue
702,000
Sales Returns and Allowances
8,000
Note: Merchandise inventory on December 31, 2012, is $58,300.
Instructions
a) Prepare an income statement through gross profit for the year ended December 31, 2012.
b) What is the gross profit percentage?
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