Exercise 9-12 Incorrect answer. Your answer is incorrect. Try again. Mark Price 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 $ 172,600 Purchases (gross) 654,500 Freight-in 31,600 Sales revenue 1,048,100 Sales returns 77,300 Purchase discounts 12,570 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. The estimated inventory at May 31 $Entry field with incorrect answer (b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% 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 $Entry field with incorrect answer