Palisade Creek Co$.$ is a merchandising business that uses the perpetual inventory system. Palisade Creek does not accept merchandise returns, but does grant refunds or credits for defective or damaged merchandise. The account balances for Palisade Creek Co as of May $120$Y$7($unless otherwise indicated$)$ are as follows:

$110$ Cash $83,600$

$112$ A$/$R $233,900$

$115$ Inventory $652,400$

$117$ Prepaid insurance $16,800$

$118$ Store supplies $11,400$

$123$ Store equipment $569,500$

$124$ Accum Depr $-$ Store equipment $56,700$

$210$ A$/$P $96,600$

$211$ Customer refunds payable $50,000$

$212$ Salaries payable $--$

$310$ Lynn Tolley Capital June $120$Y$6685,300$

$311$ Lynn Tolley Drawing $135,000$

$410$ Sales $5,069,000$

$510$ COGS $2,823,000$

$520$ Sales salaries expense $664,800$

$521$ Advertising expense $281,000$

$522$ Depr Expense $--$

$523$ Store supplies expense $--$

$529$ Misc selling expense $12,600$

$530$ Office salaries expense $382,100$

$531$ Rent expense $83,700$

$532$ Insurance expense $--$

$539$ Misc admin expense $7,800$

Part$1$: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank

May $1$ Paid rent for may, $5000$

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May $3$ Purchased merchandise on account from Martin Co terms $2/10,$ n$/30,$ FOB shipping point $36000$

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May $4$ Paid freight on purchase of May $3600$

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May $6$ Sold merchandise on account to Korman Co n$/10,$ FOB shipping point, $68500.$ The COGS was $41000$

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May $7$ Received $22300$ cash from Halstad Co on account

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May $10$ Sold merchandise for cash $54000.$ The COGS was $32000$

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May $13$ Paid for merchandise purchased on May $3$

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May $15$ Paid advertising expense for last half of May $11000$

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May $16$ Received cash from sale of May $6$

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May $19$ Purchased merchandise for cash $18700$

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May $19$ Paid $33450$ to Buttons Co on account

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May $20$ Paid Korman Co a cash refund of $5000$ for damaged merchandise from sale of May $6$ Korman Co kept the merchandise

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May $20$ Sold merchandise on account to Crescent Co terms n$/$eom$,$ FOB shipping point $110000.$ The COGS was $70000$

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May $21$ For the convenience of Crescent Co paid freight on sale of May $202300$

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May $21$ Received $42900$ cash from Gee Co on account

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May $21$ Purchased merchandise on account from Osterman Co terms $1/10,$ n$/30,$ FOB destination $88000$

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May $24$ Returned damaged merchandise purchased on May $21$ receiving a credit memo from the sellar for $5000$

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May $26$ Refunded cash on sales made for cash $800.$ The defective merchandise was not returned by the customer

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May $28$ Paid sales salaries of $56000$ and office salaries of $29000$

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May $29$ Purchased store supplies for cash $2400$

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May $30$ Sold merchandise on account to turner co terms n$/30,$ FOB shipping point $78750.$ The COGS was $47000$

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May $30$ Received cash from sale of May $20$ plus freight paid on May $21$

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May $31$ Paid for purchase of May $21$ less return of May $24$

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Part $2$: post the journal entiries to the general ledger

$4.$ At the end of may the following adjustment data were assembled: analyze and use these data to complete part $6$

a$.$ Merchandise inventory on May $31585,200$

b$.$ Insurance expired during the year $12,000$

c$.$ Store supplies on hand on May $314,000$

d$.$ Depr for the current year $14,000$

e$.$ Accrued salaries on May $31$:

sales salaries $7,000$

office salaries $6,600$

$(13600)$

f$.$ The adjustment for customer refunds and allowances is $60,000$

g$.$ Since Palisade Creek does not accept merchandise returns, no adjustment is necessary for estimated inventory returns

May $31$

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May $31$

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May $31$

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May $31$

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May $31$

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May $31$

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Part:

Prepare a multiple step income statement:

Part:

Prepare the closing entries

Part:

Prepare a post closing trial balance