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 Balances Balances $ 3,700 1,800 1,200 3,800 8,000 Credit Account Names Cash Accounts receivable Prepaid rent Inventory Purchases Purchase discounts Purchase returns & allowances Salaries payable Common stock Retained earnings Sales revenue Sales returns Cost of goods sold Salary expense Rent expense Totals $ 2,000 3,000 600 1,900 4,000 9,000 900 600 500 $20,500 $20,500 Template for Problem 5B-1; Requirement 3 (Requirements 1 and 2 are on next page) Name: Lab Section Time: TA Name: Income Statement Gross Margin Percentage Template for Problem 5B-1; Requirements 1 and 2 Accounts Receivable Prepaid Rent Cash Purchase Discounts Purchases Inventory Common Stock Salaries Payable Pur Returns & Allowances Retained Earnings Sales Revenue Sales Returns COGS Salary Expense Rent Expense Income Summary