0 Required information Exercise 4-12A Effect of purchase returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-6 [The following information applies to the questions displayed below.) The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Cash Inventory Common Stock Retained Earnings Total Debit Credit $14,660 3,140 $ 7,410 10,390 $17,800 $17, 800 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,210. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $235 cash. 3. Returned $430 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $210 allowance. 5. Sold merchandise that cost $2,690 for $14,000 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $145 cash. 7. Pald $2,890 on the merchandise purchased in Event 1. 8. Paid $8,500 cash for operating expenses. Required a. Record the events in general Journal format. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction lint Journal entry worksheet 4 5 6 1 2 3 7 8 9 Record entry for purchase of merchandise on account. Note: Enter debits before credits General Journal Debit Credit Event 01 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record entry for allowances to keep other damaged Merchandise. Note: Enter debits before credits. Event Debit General Journal Credit 04 Record entry Clear entry View general Journal Journal entry worksheet Record entry for cost of goods sold. Note: Enter debits before credits. Event General Journal Debit Credit 5b Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record cash paid for merchandise purchased. Note: Enter debits before credits. Event General Journal Debit Credit 07 Record entry Clear entry View general Journal Journal entry worksheet