Question 6 Waterway Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May nventory, May 1 $171,200 Purchases (gross) 596,600 Freight-in Sales revenue Sales returns Purchase discounts 12,300 28,400 957 000 64,700 Compute the estimated inventory at May 31, assuming that the gross profit is 20% of net sales The estimated inventory at May 31 70,060 Compute the estimated inventory at May 3 1, assuming that the gross profit is 20% of cost. Round percentage of sales to 2 decimal places, eg, 78.74% and final answer to 0 decimal places, e.g. 6,225.) The estimated inventory at May 31 $