Elite Costumes estimates its inventory by the gross profit method. The gross profit has averaged 33% of net Sales. The company’s inventory records reveal the following data (amounts in thousands):

Requirements
1. Estimate the May 31 inventory, using the gross profit method.
2. Prepare the May income statement through gross profit for Elite Costumes.

Transcribed Image Text:

Inventory, May 1 Transactions during May: Purchases Purchase discounts.... Purchase returns.... Sales Sales returns.. $ 274 7,799 175 19 8,877 38