Can you please help me out on this one?

Question

Ernst Equipment Co. wants to prepare interim financial statements for the first quarter. The company

wishes to avoid making a physical count of inventory. Ernst’s gross profit rate averages 30%. The

following information for the first quarter is available from its records:

January 1 beginning inventory . . . . . . . $ 752,880

Cost of goods purchased . . . . . . . . . . . 2,159,630

Sales . . . . . . . . . . . . . . . . . . . . . . . . . 3,710,250

Sales returns . . . . . . . . . . . . . . . . . . . . 74,200

Use the gross profit method to estimate the company’s first quarter ending inventory

Answer 1

I've emailed the file to you.

Answer 2

$25,853