Astaire 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 |
|
$161,500 |
| Purchases (gross) |
|
642,200 |
| Freight-in |
|
30,700 |
| Sales |
|
1,075,800 |
| Sales returns |
|
81,000 |
| Purchase discounts |
|
12,960
|