Cash Inventory Land Common stock Retained earnings $13,800 6,000 3.300 11.000 12,100 During Year 2, the company experienced the following events: 1. 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. 2. Returned $600 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $10.500 for $18.500 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,850 and was sold to the customer for $2,400 cash. The customer was paid $2.400 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $820 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Recognized accrued interest income of $350. 9. Took a physical count indicating that $4,400 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.) a. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 . 14 Record entry Inventory purchased on account from Ross company terms 2/10, n/30. Note: Enter debits before credits. Event General Journal Debit Credit