Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $122,200 Sales returns and allowances 910 Sales discounts 700 Merchandise inventory, January 1 34,300 Purchases during the period 77,100 Purchases returns and allowances during the period 3,910 Purchases discounts taken during the period 2,370 Freight-in on merchandise purchased during the period 1,310 Merchandise inventory, December 31 31,600