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1. The following data were extracted from the accounting records of Wedgeforth Company for the year ended November 30, 2010:Merchandise inventory, December 1, 2009 $ 210,000Merchandise inventory, November 30, 2010 185,000Purchases 1,400,000Purchases returns and allowances 20,000Purchases discounts 18,500Sales 2,250,000Freight in 14,100a. Prepare the cost of merchandise sold section of the income statement for the year ended November 30, 2010, using the periodic inventory system.
b. Determine the gross profit to be reported on the income statement for the year ended November 30, 2010.
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