Martinez Company Limited, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May: Inventory, May 1 $ 370,000 Purchases 725,000 Freight-in 51,000 Sales 1,340,000 Sales returns 75,400 Purchase discounts 12.200 (a) Your answer is incorrect. Calculate the estimated inventory at May 31, assuming that the gross profit is 25% of sales. Estimated inventory, May 31