Sales $120,800 Sales returns and allowances 970 Sales discounts 650 Merchandise inventory, January 1 35,200 Purchases during the period 77,500 Purchases returns and allowances during the period 4,010 Purchases discounts taken during the period 2,220 Freight-in on merchandise purchased during the period 1,140 Merchandise inventory, December 31 31,600 Determine the gross profit