4 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 Debit Credit 516,000 Inventory $20,000 Retained Earnings Total Cash 8.000 Common stock 524.00 $24,000 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $15.000 2. The goods in Event I were purchased Foe shipping point with freight cost of $800 cash 3. Returned $2.600 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received an $1100 allowance 5. Sold merchandise that cost $15,000 for $31000 cash 6. Delivered merchandise to customers in Events under terms Fon destination with eight costs amounting to $500 7. Pald 58.000 on the merchandise purchased in Event 8 Paid 59.000 cash for operating expenses Exercise 4-12A Part c. Prepare a multe income statement balance sheet, and statement of cash flows. Assume that closing entries have been made