Problem 5-7A At the end of Oates Department Store\'s fiscal year on November 30,
ID: 2553240 • Letter: P
Question
Problem 5-7A At the end of Oates Department Store's fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance. Freight-In Inventory (beginning) Purchases Purchase Discounts Purchase Returns and Allowances Sales Revenue Sales Returns and Allowances $ 7,388 60,298 894,980 10,220 9,870 1,316,920 29,200 Additional facts: 1 Iventory on November 30, 2017, is $52,852 2. Note that Oates Department Store uses a periodic system Prepare an income statement through gross profit for the year ended November 30, 2017 OATES DEPARTMENT STORE Income Statement (Partial)Explanation / Answer
Income Statement (Partial) Sales revenue Sales revenue 1,316,920 less:sales return & allowance 29,200 Net Sales 1,287,720 Cost of goods sold Inventory,Dec 1,2017 60,298 purchases 894,980 less:. purchase returns and allowances 9,870 Purchase discounts 10,220 20,090 Net purchases 874,890 Add:Freight in 7,388 cost of goods purchased 882,278 cost of goods avaialble for sales 942,576 less :inventory ,dec 31,2017 52,852 cost of goods sold 889,724 Gross profit/loss 397,996