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At the end of Cortez Department Store's fiscal year on November 30, 2012, these accounts appeared in its adjusted trial balance.Freight-in $ 7,500Inventory 40,000Purchases 585,000Purchase Discounts 6,300Purchase Returns and Allowances 2,700Sales Revenue 1,000,000Sales 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.
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