D Question 1 2 pts The Sarah Co. prepares quarterly financial statements using the gross margin method to estimate all but the fiscal year-end inventory. Data for the first quarter are: January 1 inventory, $146,000; net cost of purchases. $88,000; sales, $304,000; and sales returns, $12,000. The company has consistently earned gross margin at a 30% rate. The estimated cost of the ending inventory is: $29.600 $50,000 $87.600 $21.200