The following data were taken from the accounts of Delhi Hardware, a small retail business. Determine the gross profit.
Sales .............................................................. $113,500
Sales returns and allowances ........................................ 800
Sales discounts ......................................................... 500
Merchandise inventory, January 1 ............................... 34,000
Purchases during the period ...................................... 76,000
Purchases returns and allowances during the period ........... 4,000
Purchases discounts taken during the period .................... 3,000
Freight-in on merchandise purchased during the period ....... 1,500
Merchandise inventory, December 31 ........................... 30,000