Answer:
Dayton Department Store
Income statement for the year ended November 30, 2017
Sales Revenue                                 1,000,000
Less Sales Returns and Allowances                 (20,000)
Net Sales Revenue                               980,000
Less Cost of Goods Sold :
Beginning  Inventory                   40,000
Add Purchases                      585,000
Add Freight-in                         7,500
Less Purchase Returns and Allowances   (2,700)    (629,800)
Gross Profit                                     350,200
Explanation:
Periodic System calculates the value of inventory and cost of goods sold at the end of the reporting period, in this case November 30,2017.
Gross Profit is simply Sales less Cost of Goods Sold as calculated above
