1 1 of 2 [The following information applies to the questions displayed below.) At the beginning of Year 2, the Redd Company had the following balances in its accounts: Return to question + 01:55:30 Cash Inventory Common stock Retained earnings $7,800 1,800 7,300 2,300 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,300 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Transportation costs of $480 were paid in cash. 2. Returned $350 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return transportation cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $5,800 for $8,800 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $480 and was sold to the customer for $780 cash. The customer was paid $780 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Transportation costs of $580 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $1,500 of inventory was on hand at the end of the accounting period. 1 Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Part 1 of 2 Submit Return to question b. Record each event in a horizontal financial statements model. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) 5 points 20150 Balance Sheet Event Assets Liabilities Answer is not complete. REDD COMPANY Horizontal Statements Model Year 2 Stockholders' Equity Income Sti Cash 4 Accounts Receivable Merchandise Inventory Accounts Payable Common + Stock Retained Earnings Revenue Expen Bal. 7,800 + 1,800 . 7.300 2,300 1a. 5.300 = 5,300+ 1b. (480) 4 (480) O 2. + (350) = 3 (4,851) (350) + (4,950) 990 99 4a. 8,800 + 8,800 8,800 4b. (58,000) - + (5.800) 5a. (780) + + (780) (780)