At the beginning of Year 2, the Redd Compary had the following balances in its accounts Durng Year 2 the company experienced the following events: 1. Purchased imvertory that cost $11,800 on account from Ross Company under terms 240,n/30. The merchandise was delivered FOB sthipping point Freipht costs of $860 were paid in cash 2. Retumed $750 of the invertory it had purchased because the inventory was damaged in transt. The sellet agreed to pay the return freight cost. 3. Paid the amourt due on its accourt paryable to Ross Company within the cath discount period 4. Sold inventory that had cout $9,500 for $15,500 on account, under terms 210,n/45. 5. Received merchandise returned from a customer. The merchandase onginally cost $1,500 and was sold to the customer for $2700 cash. The customer was paid $2.700 cash for the returned merchandise 6. Delivered goods foB destination in Event 4. Freight costs of $750 were paid in cash 7. Collected the anount due on the account recewable within the dincount petiod 8. Sold the land for $4700 9. Recognized accrued interest income of 5550 10. Took a physical count indicating that $7,100 of inventory was on hand at the end of the accounting period. Hint Determine the current bulance in the inventory account before calculating the amount of the imventory wite down. Required: Q. Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or clairs exchange (CE). Asso explain how each event would affect the financial statements by placing a Tor increase, - for decrease, and +i-for increase and decrease under each of the components in the following statements model. Assume that the perpetual inventory method is used When an event has more than one part, use letters to distinguish the effects of each part. The first event is recorded as an example b. Pecord the events in general journal format. Assume that the perpetual imventory method and gross method is used c. Post the beginning balances and the events to the T-accounts. Note that these ledger accounts will also be used when posting the closing entry that is created in Parte. d. Prepare a multistep income statement, a statenent of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 2 e. Use a single general journat entry to close alf revenue, gain, and expense accounts to the retained eamings account. Post the joumal entry to the ledger accourts and prepare a post-closing triat balance