Problem 2 (Gross Profit Method) No Frills estimates its inventory by the gross profit method. The gross profit averaged 33% of net sales. The company's inventory records show the following: Inventory, October 1 Transactions during October Purchases Purchase discounts Purchase returns Sales Sales returns $ 2,030 7,973 125 25 8,799 21 Estimate the October 31 inventory using the gross profit method. (Show the October income statement through gross profit and the inventory T account.) Problem 2 (Gross Profit Method) No Frills estimates its inventory by the gross profit method. The gross profit averaged 33% of net sales. The company's inventory records show the following: Inventory, October 1 Transactions during October Purchases Purchase discounts Purchase returns Sales Sales returns $ 2,030 7,973 125 25 8,799 21 Estimate the October 31 inventory using the gross profit method. (Show the October income statement through gross profit and the inventory T account.)