b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts. Required information [The following information applies to the questions displayed below] The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,140. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. 3. Returned $465 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company recelved an $300 allowance. 5. Sold merchandise that cost $2,640 for $13,200 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $180 cash. 7. Paid \$2,980 on the merchandise purchased in Event 1. 8. Paid $8,730 cash for operating expenses. Required a. Record the events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) d. Why does a difference exists between net income and net casth flow from operating activities. Multiple Chaice The difference between net income and net cash flow from operating activities exists because the shop is not selling all the irveritory that it putctased during the peciod. The difference between not income and net cash flow from opetating actwitier exists becsuse operating expenses are not fequired be to accounted for when determining net incorne. The difference between net income and net cash flow from operating activites exists becouse of maintaining the imentocy records using the perpetual inventory systom. Journal entry worksheet B C D E F Record entry for purchase of merchandise on account. Note: Enter debits before credits. \begin{tabular}{|l|l|l|l|l|l|l|} \hline Beg. Bal & & & & \\ \hline \end{tabular} Prepare a balance sheet. Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus slgn.) Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been mac Complete this question by entering your answers in the tabs below. Prepare an income statement