Required: Prepare the journal entry required at December 31, 2020 assuming that the inventory is recorded at LCNRV, and the inventory system is perpetual, using the cost-of-goods-sold method. 4 Wright Company uses the gross profit method to estimate inventory for monthly reporting purposes (internally). Presented below is information for the month of May: Inventory, May 1 Purchases (gross) Freight-in Sales Sales returns $40,000 160,000 7,500 250,000 17,500