Eart B Martin Sports Equipment's trial balance for the year ended March 31, 2021 is provided below. Martin's uses the perpetual inventory system. A count of the inventory on hand shows the actual amount on hand is $26,500. All other year-end adjusting entries have been made. Martin Sports Equipment Trial Balance March 31, 2021 lCash $ 3,500 Accounts receivable 9,250 Merchandise Inventoryr 26,100 Longterm Investment 10,000 Accounts payable $ 11,100 Interest payable 100 Note payable, due 2023 5,000 C. Martin, Capital 10,270 C. Martin, Drawmgs 6,000 Sales 195,000 Sales returns and allowances 620 Sales discounts 300 Cost of goods sold 122,500 Salaries expense 26,000 Advertising expense 4,500 Rent expense 12,600 Interest expense 100 M M Instructions i. Prepare the adjusting entry to record the correct inventory account. ii. Prepare the closing entries. iii. Prepare a multiple-step income statement for Low's Hardware