at the beginning of year 2

Required information [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: During Year 2. the company experienced the following events: 1. Purchased inventory that cost $5,000 on account from Ross Compary under terms 20, n/30. The merchandise was dellvered FOB shipping point. Frelght costs of $450 were paid in cash. 2. Returned $350 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 Ross Company within the cash discount perlod. 4. Sold inventory that had cost $5,500 for $8,500 on account, under terms 2/10,n/45. 5. Recelved merchandise returned from a customer. The merchandise originally cost $450 and was sold to the custamet for $750 cash. The customer was paid $750 cash for the retumed merchandise. 6. Dellvered goods FOB destination in Event 4. Freight costs of $550 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $1,200 of inventory was on hand at the end of the accounting petiod: b. Record each event in a statements modet like the following one. In the Cash Flow column, use oA to designate operating acivily, in for investment activity. FA for financing activity. of NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. (Not every cell will require entry. Enter ony decreoses to account bolances (utflows with a minus sign.)