Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $123,000 Sales returns and allowances 800 Sales discounts 730 34,000 76,600 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 3,840 2,240 1,120 32,000 A Determine the gross profit. 8,878 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. eBook Trade Discount and Cash Discounts Merchandise was purchased on account from Devlin's Deliveries on May 17. The purchase price was $2,400, less a 10% trade discount and credit terms of 2/10, n/30. 1. Calculate the net amount to record the invoice, less the 10% trade discount. 5 2,160 2. Calculate the amount to be paid on this invoice within the discount period. form 3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period). Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Purchases 1 May 17 2,160 1 2 Accounts Payable/Devlin's Deliveries v 2.160 2 3 Purchased merchandise 2 427 Accounts Payable/Devlin's Deliveries 2.160 4 Cash Purchases Discounts Paid invoice within discount period