Problem 2 (Gross Profit Method) Fresh Co. estimates its inventory by the gross profit method. The gross profit averaged 35% of sales. The company's inventory records show the following: Inventory, September 1 $ Transactions during September Purchases Purchase discounts Purchase returns Sales Sales returns 1,640 7,850 168 22 8,900 32 Estimate the September 30 inventory using the gross profit method. (Show the September income statement through gross profit and the inventory T account.

Fresh Co. estimates its inventory by the gross profit method. The gross profit averaged 35% of sales. The company's inventory records show the following: Estimate the September 30 inventory using the gross profit method. (Show the September income statement through gross profit and the inventory T account