The following data were taken from the accounts of Fluter Hardware, a small retail business. Determine the gross profit.
Sales ........................ $120,000
Sales returns and allowances ................ 900
Sales discounts .................... 650
Merchandise inventory, January 1 .............. 35,000
Purchases during the period ............... 77,600
Purchases returns and allowances during the period ...... 4,100
Purchases discounts taken during the period ......... 2,300
Freight-in on merchandise purchased during the period .... 1,250
Merchandise inventory, December 31 ........... 32,000