Sales	$120,800
Sales returns and allowances	800
Sales discounts	750
Merchandise inventory, January 1	35,900
Purchases during the period	77,600
Purchases returns and allowances during the period	4,120
Purchases discounts taken during the period	2,200
Freight-in on merchandise purchased during the period	1,120
Merchandise inventory, December 31	32,400

Determine the gross profit.