Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. $120,100 Sales 960 Sales returns and allowances 680 Sales discounts 36,000 Merchandise inventory, January 1 76,700 Purchases during the period 3,980 Purchases returns and allowances during the period 2,380 Purchases discounts taken during the period 1,270 Freight-in on merchandise purchased during the period 31,700 Merchandise inventory, December 31 Determine the gross profit