Extravaganza Costumes estimates its inventory by the gross profit method. The gross profit has averaged 29% of net sales. The company’s inventory records reveals the following data (amounts in thousan

Extravaganza Costumes estimates its inventory by the gross profit method. The gross profit has averaged 29% of net sales. The company’s inventory records reveals the following data (amounts in thousands)

Inventory, March 1 $293

Transaction during March:

Purchases 7767

Purchases discounts 167

Purchases returns 27

Sales 8642

Sales returns 32

Requirement 1. Estimate the March 31 inventory, using the gross profit (Enter amounts in thousands and round amounts to the nearest whole number)

Requirement 2. Prepare the March income statement through gross profit for Extravaganza Costumes. (Enter amounts in thousands)

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