Sage Company uses the gross proft method to estimate inventory for monthly reporting purposes. Presented below is Information for the month of May. Inventory, May 1 $147,800 Purchases (gross) 637,400 Freight-in 31,000 Sales revenue 953,600 Sales returns 72,200 Purchase discounts 11,900 (a) Your answer is com is correct. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $ 143,250 (b) eTextbook and Media Attempts: 1 of 3 used * Your answer is incorrect. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.) The estimated inventory at May 31 $ 143.250