During Year $2,$ the company experienced the following events:

$1.$ Purchased inventory that cost $$12,700$ on account from Ross Company under terms $2/10,$ n$/30.$ The merchandise was delivered FOB shipping point. Freight costs of $$950$ were paid in cash.

$2.$Returned $$700$ 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 $$10,000$ for $$19,000$ on account, under terms $2/10,$ n$/45.$

$5.$Received merchandise returned from a customer. The merchandise originally cost $$1,950$ and was sold to the customer for $$2,600$ cash. The customer was paid $$2,600$ cash for the returned merchandise.

$6.$Delivered goods FOB destination in Event $4.$ Freight costs of $$840$ were paid in cash.

$7.$Collected the amount due on the account receivable within the discount period.

$8.$Sold the land for $$6,500.$

$9.$Recognized accrued interest income of $$450.($To record this entry, debit the asset account Interest Receivable $($this account will be on the balance sheet in the asset section and does NOT get closed at year end$)$ and credit the revenue account Interest Revenue $($this account is a temporary revenue account recorded on the income statement that gets closed at year end$).$ This entry will be discussed in future chapters and will NOT be tested on Test $2).$

$10.$Took a physical count indicating that $$4,600$ 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.$)$ beg balances are cash$-14800$ inv$-7000$ land$-3500$ common stock$-13,000$ retained earnings$-12,300$