Problems for Section 5B 5B-1. (This problem is similar to the summary problem provided above.) The Adjusted Trial Balance for TILFORD Merchandising Corporation for the month ending May 1 (prior to the COGS calculation) is presented below. The inventory value shown is from the beginning of the month. Inventory on hand at the end of May was $700. Required: 1. Open the trial balance T-accounts and the income summary account and enter the beginning balances. Enter the ending balance for inventory. 2. Make closing entries. Indicate the values of net revenue, net purchases, goods available for sale, and gross margin. Calculate the ending balance in each account. 3. Prepare the income statement (highlighting gross margin). What is the gross margin percentage? TILFORD MERCHANDISING CORPORATION Adjusted Trial Balance May 1, 20x1 Debit Credit Account Names Balances Balances Cash $ 3,700 Accounts receivable 1.800 Prepaid rent 1,200 Inventory 3.800 Purchases 8,000 Purchase discounts $ 2,000 Purchase returns & allowances 3,000 Salaries payable 600 Common stock 1.900 Retained earnings 4,000 Sales revenue 9,000 Sales returns 900 Cost of goods sold Salary expense 600 Rent expense 500 Totals $20,500 $20,500