QuestionOn January 1, The Parts Store had a $\$ 440,000$ inventory at cost. During the first quarter of the year, it purchased $\$ 1,580,000$ of merchandise, returned $\$ 22,600$, and paid freight charges on purchased merchandise totalling $\$ 37,100$. During the past several years, the store's gross profit on sales has averaged $20 \%$. Under the assumption the store had $\$ 1,990,000$ 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. Ending inventory