Please specify the answer Question 1 At the end of Donaldson

Question 1 At the end of Donaldson Department Store\'s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balar Freight-in Inventory Purchases Purchase Discounts $7,400 41,000 596,100 6,500 2,800 1,015,000 21,300 Purchase Returns and Allowances Sales Revenue Sales Returns and Allowances Additional facts: 1. Merchandise inventory on November 30, 2017, is $51,900. 2. Donaldson Department Store uses a periodic system. Prepare an income statement through gross profit for the year ended November 30, 2017 DONALDSON DEPARTMENT STORE Income Statement (Partial) &Sons.; Inc. All Rights Reserved. A Division of C.

Solution

Income Statement (prtial) Sales revenue 1015000 Less: Sales return and allowances 21300 Net sales revenue 993700 Cost of Goods sold Beginning Inventory 41000 Purchase 596,100 Less: Purchase discount 6500 Less: Purchase returns 2800 9300 Net purchases 586,800 Add: Freight in 7400 Cost of Goods purchased 594,200 Total goods available for sale 635,200 Less: ending inventory 51900 Cost of Goods sold 583,300 Gross margin 410,400