At the beginning of 2013, the Bradley Company had the following balances in its accounts:

Cash	$	8,100
Inventory		2,100
Common stock		7,600
Retained earnings		2,600

During 2014, the company experienced the following events:

1.	Purchased inventory that cost $5,600 on account from Bivins Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $510 were paid in cash.
2.	Returned $300 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3.	Paid the amount due on its account payable to Bivins Company within the cash discount period.
4.	Sold inventory that had cost $6,100 for $9,100 on account, under terms 2/10, n/45.
5.	Received merchandise returned from a customer. The merchandise originally cost $510 and was sold to the customer for $810 cash. The customer was paid $810 cash for the returned merchandise.
6.	Delivered goods FOB destination in Event 4. Freight costs of $610 were paid in cash.
7.	Collected the amount due on the account receivable within the discount period.
8.	Took a physical count indicating that $1,800 of inventory was on hand at the end of the accounting period.

b. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.) BRADLEY COMPANY Horizontal Statements Model-2014 Income Statement Balance Sheet Statement of Cash Flows Assets LiabilitiesStockholders' Equity Net Accounts+Merchandise Accounts Common Retained Revenue Expenses Receivable Event Earnings 2,600 Invento Payable Stock NA Bal 8,100+ 2,100 7,600 + 1b 4a 4b 5b Bal