At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash 7,500 Inventory 1,500 Common stock 7,000 Retained earnings 2,000 During Year 2, the company experienced the following events: Purchased inventory that cost $5,000 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Transportation costs of $450 were paid in cash. Returned $350 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return transportation cost. Paid the amount due on its account payable to Ross Company within the cash discount period. Sold inventory that had cost $5,500 for $8,500 on account, under terms 2/10, n/45. Received merchandise returned fr