Sheridan Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $156,000 Purchases (gross) 576,100 Freight-in 29,300 Sales revenue 998,400 Sales returns 72,100 Purchase discounts 11,900 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $