On January 1 The Parts Store had a $500.000 inventory at cost During the first quarter of the year, it purchased $1,600,000 of merchandise returned $25 600 and paid freight charges on purchased merchandise totalling $4000 During the past several years the store's gross proton sales has averaged 20%. Under the assumption the store had $2,050,000 of sales during the fest quarter of the year use the gross profit method to estimate its inventory at the end of the first quarter