Our orders are delivered strictly on time without delay 
Perpetual and Periodic System
The following transactions were completed during December by QLO Clothing.
Dec 2
Dec 5 Paid freight on Giant Co. purchase $90
Dec 7 Sold hats to Nunez, Co $2,400, terms n/30. The merchandise sold had a cost of
$2,100
Dec 10 Received credit of $95 from Giant Co. for pants that was returned
Dec 12 Purchased jackets from Margot for cash $2,150
Dec 13 Paid Giant Co. In full
Dec 15 Purchased cardigans from Alpha $2,000, FOB Shipping Point, terms
5/10, n/60
Dec 16 Received cash refund of $175 from Margot for damaged jackets that was returned
Dec 18 Paid freight on Alpha purchase $95
Dec 19 Sold jackets to members $1070, terms n/45. The cost of merchandise sold was $550
Dec 22 Received $830 in cash from Nunez, Co in settlement of their account
Dec 25 Paid Alpha in full
Dec 28 Granted an allowance of $95 to Nunez, Co for hats that were torn. The cost of the
hat is $60
Required:
Prepare the December transactions using a perpetual and periodic inventory system
Task:
Income Statement
At the end of Nets Ltd.’s fiscal year on December 31, 2022, these accounts appeared in its
adjusted trial balance.
Freight – In $ 9,300
Inventory (1 Jan 2022) $ 55,000
Purchases $ 850,000
Purchases Discount $ 35,000
Purchases Return and Allowances $ 8,500
Sales Revenue $ 865,000
Sales Return and Allowances $ 32,000
Additional facts:
1. Merchandise inventory on December 31, 2022, is $92,000
2. Nets Ltd. uses a periodic system.
Required:
Prepare an income statement through gross profit for the year ended December 31,2022.
