2 Required information Part 2 of 3 0.33 points ellook Hint Ask Exercise 4-12A (Algo) Effect of purchase returns and allowances and transportation costs on the financial statements: Perpetual system LO 4-2, 4-4, 4-6 [The following information applies to the questions displayed below.] The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Cash Inventory Common Stock Retained Earnings Beginning Balances $ 6,160 3,100 7,420 1,840 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,180. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $225 cash. 3. Returned $465 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $300 allowance. 5. Sold merchandise that cost $2,580 for $4,770 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $115 cash, 7. Paid $2,970 on the merchandise purchased in Event 1. Exercise 4-12A (Algo) Part b Chec