please show work and explain

Tamarisk Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 39,100 Purchases (gross) 157.100 Freight-in Sales revenue 257,400 Sales returns 18.700 Purchase discounts 2.700 8,000 (a) Your answer is incorrect Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales, The estimated inventory at May 31 $