23 On January 1, The Parts Store had a $410,000 inventory at cost. During the first quarter of the year, it purchased $1,550,000 of merchandise, returned $21,100, and paid freight charges on purchased merchandise totalling $35,600. During the past several years, the store's gross profit on sales has averaged 20%. Under the assumption the store had $1,960,000 of sales during the first quarter of the year, use the gross profit method to estimate its inventory at the end of the first quarter. Ending inventory 8 02-28.01