Answer:
$46,430
Explanation:
Data provided in the question:
Sales = $121,800
Sales returns and allowances = 970
Sales discounts = 560
Merchandise inventory, January 1 = 34,300
Purchases during the period = 76,700
Purchases returns and allowances during the period = 3,820
Purchases discounts taken during the period = 2,460
Freight-in on merchandise purchased during the period = 1,120
Merchandise inventory, December 31 = 32,000
Now,
Net sales = Sales - Sales returns and allowances - Sales discounts
= $121,800 - $970 - $560
= $120,270
Cost of good sold
= Opening Inventory + Net purchases + Freights - Closing Inventory
= 34,300 + ( 76,700 - 3,820 - 2,460 ) + 1,120 - 32,000
= $73,840
Therefore,
Gross profit = Net sales - Cost of good sold
= $120,270 - $73,840
= $46,430
