Using the Following Data Taken from Hsu's Imports Inc

Essay

Using the following data taken from Hsu's Imports Inc. which uses a periodic inventory system, determine the gross profit to be reported on the income statement for the year ended March 31.? $\begin{array}{|l|r|}\hline \text { Merchandise inventory, April 1 } & \$ 193,250 \\\hline \text { Merchandise inventory, March 31 } & 180,100 \\\hline \text { Purchases } & 1,079,600 \\\hline \text { Purchases returns and allowances } & 51,200 \\\hline \text { Purchases discounts } & 18,500 \\\hline \text { Sales } & 1,860,000 \\\hline \text { Freight in } & 19,250 \\\hline\end{array}$