# I understand the formulas I'm just not sure how to format this. Could someone please format it and then I can prepare the income statement?

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 \$ 6,072

Inventory (beginning) 49,560

Purchases 735,600

Purchase Discounts 8,400

Purchase Returns and Allowances 8,112

Sales Revenue 1,082,400

Sales Returns and Allowances 24,000

1. Inventory on November 30, 2017, is \$43,440.

2. Note that Oates Department Store uses a periodic system.

Prepare an income statement through gross profit for the year ended November 30, 2017.

I understand the formulas I'm just not sure how to format this. Could someone format it and then I can prepare the income statement?

Relevance
• 2 months ago

Sales Revenue 1,082,400

Sales Returns and Allowances -24,000

Net sales

Inventory (beginning) 49,560

Purchases 735,600

Freight-In \$ 6,072

Purchase Discounts -8,400

Purchase Returns and Allowances -8,112

Inventory (ending) -43,440

Cost of goods sold

Gross profit

• Don G
Lv 7
2 months ago

Just review your text on preparing an Income Statement, including the composition of Cost of Goods Sold. If you understand the formulas, what's holding you up?