Computing Gross Profit

The following data were taken from the accounts of Fluter Hardware, a small retail business.

Sales

Sales returns and allowances

Sales discounts

Merchandise inventory, January $1$

Purchases during the period

Purchases returns and allowances during the period

Purchases discounts taken during the period

Freight$-$in on merchandise purchased during the period

Merchandise inventory, December $31$

Determine the gross profit.

$$120,000$

$900$

$650$

$35,000$

$77,600$

$4,100$

$2,300$

$1,250$

$32,000$