. Clay Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Clays gross profit rate averages 35%. The following information for the first quarter is available for its records.

January 1 beginning inventory $300,280

Cost of goods purchased 988,000

Sales 1,591,860

Sales Returns & Allowance 7,750

Required Use the gross profit method to estimate the companys first quarter ending inventory