Problem $6-10$AB $($Algo$)$ Gross profit method LO P$4$

Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages $25\%.$ The following information for the first quarter is available from its records.

Beginning inventory, January $1$

cost of goods purchased

Sales

Sales returns

$$400,260$

$1,039,050$

$1,291,150$

$10,450$

Required:

Use the gross profit method to estimate the company's first$-$quarter ending inventory.

$\backslash$table$[[$Beginning inventory, January $1,$$$,400,260],[$Net cost of goods purchased,$1,039,050,],[,$$$,1,439,310$