At the beginning of 2019, Redd Company had the following balances in its accounts: Cash Inventory Common stock Retained Earnings $16,900 25,000 30,000 11,900 During 2019, the company experienced the following events: 1. Purchased inventory that cost $15,200 on account from Redd Company, under terms 1/10,n/30. The merchandise was delivered FOB shipping point. Freight costs of $200 were paid in cash. 2. Returned $800 of the inventory that it had purchased because it was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its accounts payable to Redd Company within the cash discount period. 4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10,n/45. 5. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash. 6. The customer in event 4 returned $1,500 of the inventory. The inventory originally cost $800. 7. Collected the amount due on the accounts receivable within the discount period. 8. Took a physical count and determined that $21,000 of inventory was on hand at the end of the accounting period. 9. Uncollectible accounts (bad debt) expense was estimated at 1 percent of net sales on account. Required: A) Record each event in a horizontal statements model under a perpetual inventory system. B) Prepare a multistep income statement (common size it as well), a statement of retained earnings, a balance sheet, and a statement of cash flows