22. X Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $122,500. The following information for the month of August was available from company records: Purchases $418,000 Freight-in 6,800 Sales 620,000 Sales returns 39,000 Purchases returns 7,300 Required: 1. Calculate the estimated inventory at the end of August, assuming a gross profit ratio of 25%