Exercise 6-12 Estimating ending inventory-gross profit method LO 6 On January 1, The Parts Store had a $430,000 inventory at cost. During the first quarter of the year, it purchased $1,570,000 of merchandise, retumed $22,100, and paid frelght charges on purchased merchandise totalling $36,600. During the past several years. the store's gross profit on soles has averaged 30%. Under the assumption the store had $1,980.000 of sales during the first quarter of the year, use the gross profit method to estimate its inventory at the end of the first quarter