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 $ 3,800 Accounts receivable 1,300 Prepaid rent 1100 Inventory 3,400 Purchases 7,000 Purchase discounts Purchase returns & allowances Salaries payable Common stock Retained earnings Sales revenue Sales returns 400 Cost of goods sold Salary expense 600 Rent expense 500 Totals $18,100 $ 1,000 2000 800 1,700 3,600 9,000 $18,100