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Question - Sheffield Company Limited uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May:
Inventory, May 1 $361,000
Purchases 716,000
Freight-in 52,000
Sales 1,350,000
Sales returns 75,000
Purchase discounts 11,100
Calculate the estimated inventory at May 31, assuming that the markup on cost is 25%.
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