Belle Equipment Co. wants to prepare interim financial statements for the first quarter of 2020. The company uses a periodic inventory system but would like to avoid making a physical count of inventory. During the last five years, the company’s gross profit rate has averaged 30%. The following information for the year’s first quarter is available from its records:

January 1 beginning inventory ................................... $ 376,440
Purchases ..................................................................... 1,066,050
Purchase returns .............................................................. 19,185
Transportation-in ............................................................. 32,950
Sales .............................................................................. 1,855,125
Sales returns ..................................................................... 37,100

Required

Use the gross profit method to prepare an estimate of the company’s March 31, 2020, inventory.