Prepare an income statement through gross profit.
At the end of Truly Department Store's fiscal year on December 31, 2007, these accounts appeared in its adjusted trial balance
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Freight -in
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$
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5,600
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Merchandise Inventory (begin)
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40,500
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|
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Purchases
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446,000
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Purchase Discounts
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12,000
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Purchase returns and allowances
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6,400
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|
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Sales
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|
|
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727,000
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Sales returns and allowances
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8,000
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Additional facts:
1. Merchandise inventory on December 31, 2007, is 71,000
2. Note that Truly Department Store uses a periodic system.
Instructions
Prepare an income statement through gross profit for the year ended December 31, 2007