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Question
Using the following data taken from Connor Inc. which uses a periodic inventory system, determine the gross profit to be reported on the income statement for the year ended May 31.
| Merchandise inventory, June 1 | $ 393,250 |
| Merchandise inventory, May 31 | 380,100 |
| Purchases | 1,579,600 |
| Purchases returns and allowances | 81,200 |
| Purchases discounts | 16,500 |
| Sales | 2,060,000 |
| Freight in | 59,250 |
Answer
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