During Year 2 , the company experlenced the following events: 1. Purchased Inventory that cost $5,200 on account from Ross Company under terms 1/10,n/30. The merchandise was dellvered FOB shipping point. Freight costs of $190 were paid In cash. 2. Returned $400 of the Inventory It had purchased because the Inventory was damaged In transit. The seller agreed to pay the return frelght cost. 3. Pald the amount due on Its account payable to Ross Company withn the cash discount perlod. 4. Sold Inventory that had cost $6,800 for $12,100 on account, under terms 2/10,n/45. 5. Recelved merchandise returned from a customer. The merchandise originally cost $900 and was sold to the customer for $1,680 cash. The customer was pald $1,680 cash for the returned merchandise. 6. Dellvered goods FOB destination In Event 4 . Freight costs of $140 were paid in cash. 7. Collected the amount due on the account recelvable within the discount perlod. 8. Sold the land for $8,500. 9. Recognized accrued Interest Income of $600. 10. Took a physical count Indicating that $13,400 of Inventory was on hand at the end of the accounting perlod. Hint: Determine the current balance in the Inventory account before calculating the amount of the Inventory write down. Requlred: a. Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or clalms exchange (CE). Also explain how each event would affect the financlal statements by placing a + for Increase, - for decrease, and +/ - 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. Record the events In general journal format. Assume that the perpetual Inventory 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 Part e. d. Prepare a multistep Income statement, a statement of changes in stockholders' equlty, a balance sheet, and a statement of cash flows for Year 2. e. Use a single general journal entry to close all revenue, gain, and expense accounts to the retalned earnings account. Post the journal entry to the ledger accounts and prepare a post-closing trlal balance. Complete this question by entering your answers in the tabs below. Identify each of these events as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also explain how each event would affect the financial statements by placing a + for increase, - for decrease, and +/ 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. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity.)