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. Feedback Check My Work Step 1 Compute net sales. $120,000 900 650 35,000 77,600 4,100 2,300 1,250 32,000