Kesler, Inc. estimates the cost of its physical inventory at March 31 for use in interim financial statements. Kesler's rate of markup on cost is 25%. The following account balances are available at March 31: Inventory, March 1 $550000 Purchases 430000 Purchase returns 20000 Sales during March 750000 The estimate of the cost of inventory at March 31 would be $210000. $360000. $230000. $397500