Blue Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 145,400 Purchases (gross) 658,600 Freight-in 27.700 Sales revenue 990,600 Sales returns 76,300 Purchase discounts 11,900 (a) * Your answer is incorrect. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $ 685725