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. X Feedback Check My Work Step 1 Compute net sales. Step 2 Compute goods available for sale. Step 3 Compute cost of goods sold. Step 4 Compute gross profit. $122,400 960 650 34,700 77,900 4,000 2,430 1,100 31,600