Question - 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 Additional facts: 1. Merchandise inventory on December 31, 2012, is $58,300. 2. Note that Ehlinger Department Store uses a periodic system.

Instructions - Prepare an income statement through gross profit for the year ended December 31, 2012.