Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2018, are as follows: Assume all accounts have normal balances.110 Cash $ 83,600112 Accounts receivable 233,900115 Inventory 624,400116 Estimated returns inventory 28,000117 Prepaid insurance 16,800118 Store supplies 11,400123 Store equipment 569,500124 Accumulated depreciation-store equipment 56,700210 Accounts payable 96,600211 Salaries payable —212 Customers refunds payable 50,000310 Common stock 100,000311 Retained earnings 585,300312 Dividends 135,000313 Income summary —410 Sales 5,069,000510 Cost of goods sold 2,823,000520 Sales salaries expense 664,800521 Advertising expense 281,000522 Depreciation expense —523 Store supplies expense —529 Miscellaneous selling expense 12,600530 Office salaries expense 382,100531 Rent expense 83,700532 Insurance expense —539 Miscellaneous administrative expense 7,800During May, the last month of the fiscal year, the following transactions were completed:Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles. May 1 Paid rent for May, $5,000.3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.4 Paid freight on purchase of May 3, $600.6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000.7 Received $22,300 cash from Halstad Co. on account.10 Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000.13 Paid for merchandise purchased on May 3.15 Paid advertising expense for last half of May, $11,000.16 Received cash from sale of May 6.19 Purchased merchandise for cash, $18,700.19 Paid $33,450 to Buttons Co. on account.20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles. May 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000.21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.21 Received $42,900 cash from Gee Co. on account.21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.28 Paid sales salaries of $56,000 and office salaries of $29,000.29 Purchased store supplies for cash, $2,400.30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000.30 Received cash from sale of May 20 plus freight paid on May 21.31 Paid for purchase of May 21, less return of May 24.3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).A. Inventory on May 31, $570,000B. Insurance expired during the year, $12,000C. Store supplies on hand on May 31, $4,000D. Depreciation for the current year, $14,000E. Accrued salaries on May 31:Sales salaries, $7,000Office salaries, $6,600Total accrued salaries: $13,600F. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold.5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet.6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*B. Post the adjusting entries.7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank.* Refer to the Chart of Accounts for exact wording of account titles.