At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Common stock Retained earnings $8,300 2,300 7,B00 2,800 During Year 2, the company experlenced the following events: Purchased inventory that cost $5,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $530 were paid in cash. 2. Returned $300 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Pald the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $6,300 for $9,300 on account, under terms 2/10, n/45 5. Recelved merchandise returned from a customer. The merchandise orlginally cost $530 and was sold to the customer for $830 cash. The customer was pald $830 cash for the returned merchandise 6. Delivered goods FOB destination in Event 4. Freight costs of $630 were paid in cash 7. Collected the amount due on the account recelvable within the discount period. 8. Took a physical count indicating that $2,000 of Inventory was on hand at the end of the accounting period. Required a. ldentlfy these events as asset source (AS), asset use (AU), asset exchange (AE), or clalms exchange (CE). (Select "NA" if there is no effect on the "Classificatlon".) 1a. (Purchase inventory). 1b. Shipping cost). 2. AS AE 4a. (Recording revenue). 4b. (Recording cost of goods sold). 5a. (Reversing revenue). 4b. (Reversing cost of goods sold) AS AU AU AS