Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: 110 Cash $ 83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation-Store Equipment 56,700 210 Accounts Payable 96,600 211 Salaries Payable 212 Customers Refunds Payable 50,000 310 Common Stock 100,000 311 Retained Earnings 585,300 312 Dividends 135,000 313 Income Summary 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 5/1 Rent Expense 5000 Cash 5000 5/3 Merchandise Expense 35280 Accounts payable 35280 5/4 Merchandise Inventory 600 Cash 600 5/6 Cost of Merchandise Sold 41000 Merchandise Inventory 41000 5/6 Accounts Payable 67130 Sales 67130 5/7 Cash 22300 Accounts Receivable 22300 5/10 Cost of Merchandise Sold 32000 Merchandise Inventory 32000 5/10 Cash 4000 Sales 4000 5/13 Accounts Payable 35280 Cash 35280 5/15 Advertising Expense 11000 Cash 11000 5/16 Cash 67130 Accounts Receivable 67130 5/19 Accounts Payable 33450 Cash 33450 5/19 Merchandise Inventory 18700 Cash 18700 5/19 Customer Refunds Payable 13230 Cash 13230 5/20 Merchandise Inventory 8000 Estimated Returns Inventory 8000 5/20 Accounts Receivable 108900 Sales 108900 5/20 Cost of Merchandise Sold 70000 Merchandise Inventory 70000 5/21 Accounts Receivable 2300 Cash 2300 5/21 Cash 42900 Accounts Receivable 42900 5/21 Merchandise Inventory 87120 Accounts Payable 87120 5/24 Accounts Payable 4950 Merchandise Inventory 4950 5/26 Customer Refunds Payable 7500 Cash 7500 5/28 Sales Salaries Expense 56000 Office Salaries Expense 56000 5/29 Store Supplies 2400 Cash 2400 5/30 Accounts Receivable 77175 Sales 77175 5/30 Cash 111200 Accounts Receivable 111200 5/30 Cost of Merchandise Sold 47000 Merchandise Inventory 47000 5/30 Accounts Receivable 72300 Cash 72300 5/31 Accounts Payable 82170 Cash 82170 5/31 Store Supplies Expense 9800 Store Expense 9800 5/31 Insurance Expense 12000 Prepaid Expense 12000 5/31 Depreciation Expense 1400 Accumulated Depreciation-Store Equipment 1400 5/31 Sales Salaries Expense 7000 Office Salaries Expense 6600 Salaries Payable 13600 5/31 Cost of Merchandise Sold 78750 Merchandise Inventory 78750 5/31 Estimated Returns Inventory 35000 Cost of Merchandise Sold 35000 5/3 Sales 60000 Customers Refunds Payable 60000 Instructions: Prepare an unadjusted trial balance and adjusted trial balance for May 31, 2016 - Prepare Income statement