6. Crowder Inc. is a merchandising company which uses the periodic inventory system. Based on the selected account balances below, determine Crowder's beginning inventory: Net Income Sales Revenue Purchases Inventory (ending) Purchase Returns and Allowances Transportation in Transportation - out Sales Discounts Sales Returns and Allowances Other Operating Expenses Purchase Discounts $37,000 175,000 90,000 17,000 3,000 4,000 6,000 8,000 5,000 35,000 7,000 A. $23,000 B. $72,000 C. $84,000 D. $90,000 E. $17,000 7. May's Department Store has the following information available for their Jewelry Department for the period January 1 through May 1, 2018: Net Sales Beginning Inventory Purchases $1,160,000 38,440 731,000 Freight -In Purchase Discounts Purchase Returns $8,000 9,440 12,000 Over the past two years, May has maintained a normal gross profit rate of 38% of net sales within this department. Using the gross profit method, estimate the amount of inventory May's should have on hand as of May 1, 2018. A. $315,200 B. $36,800 C. $38,240 D. $28,800 E. $50,240