Splish Company uses the gross profit method to estimateinventory for monthly reporting purposes. Presented below isinformation for the month of May.
| Inventory, May 1 | | $ 162,100 |
| Purchases (gross) | | 691,300 |
| Freight-in | | 30,800 |
| Sales revenue | | 1,041,700 |
| Sales returns | | 65,900 |
| Purchase discounts | | 12,500 |
Compute the estimated inventory at May 31, assuming that thegross profit is 25% of net sales.
| The estimated inventory at May 31 | | ($enter the dollar amount of the estimated inventory at May31) |
Compute the estimated inventory at May 31, assuming that thegross profit is 25% of cost. (Round percentage of salesto 2 decimal places, e.g. 78.74% and final answer to 0 decimalplaces, e.g. 6,225.)
| The estimated inventory at May 31 | | ($enter the dollar amount of the estimated inventory at May31) |
