Problem 3 On July 1, Jack Doodie Company had $385,000 of beginning inventory at cost. In the first quarter of the year, it purchased $2,326,000 of merchandise, returned $42,700, and paid freight charges of $16,900 on purchased merchandise with terms FOB shipping point. The company's gross profit averages 60%, and sales for the quarter totalled $4,268,500. Required: Using the gross profit method, calculate the estimated amount of merchandise inventory at September 30