At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash $13,800 Inventory 6,000 Land 3,300 Common stock 11,000 Retained earnings 12,100 During Year 2, the company experienced the following events: Purchased inventory that cost $12,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $930 were paid in cash. Returned $600 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. Paid the amount due on its account payable to Ross Company within the cash discount period. Sold inventory that had cost $10,500 for $18,500 on account, under