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Required Information [The following information applies to the questions displayed below.] At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Land Common stock Retained earnings $14,300 6,500 3,400 12,000 12,200 During Year 2, the company experienced the following events: 1. Purchased Inventory that cost $12,600 on account from Ross Company under terms 2/10,n/30. The merchandise was delivered FOB shipping point. Freight costs of $940 were paid in cash. 2. Returned $650 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 $11,000 for $19,000 on account, under terms 2/10, n/45 5. Received merchandise returned from a customer. The merchandise originally cost $1,900 and was sold to the customer for $2,500 cash. The customer was paid $2.500 cash for the returned merchandise 6. Delivered goods FOB destination in Event 4. Freight costs of $830 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $6,300. 9. Recognized accrued interest income of $400. 10. Took a physical count indicating that $4,500 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.) 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. Beg. Bal Beg. Bal 7b. Cash 14,300 18,620 6,300 0 940 1b. 11,711 3b 2,500 5a. 8306 Merchandise Inventory 6,500 12,600 6502 940 2393a. 1,900 11,000 45. 4,500 10. End. Bal 23,239 End. Bal Bal 5,551 5,551 Accounts Receivable Interest Receivable Beg. Bali 0 Beg. Bal 19,000 400 3807a. 18,6207b. End. Bal End. Bal 400 Accounts Payable Land 3,400 Beg. Bal Beg. Bal 3,4008 12,6001a. 3a. 650 239 11,711 End. Bal End. Bal Common Stock 0 12,000 Retained Earnings 0 12,200 Beg. Bal Beg. Bal End. Bal 12,000 End. Bal 12,200 Cost of Goods Sold Beg. Bali Beg. Bal Sales Revenue 0 0 19,000 4a. 2,500 380 16,120 11,000 5,551 5a. 1,900 5b. ria Bal 14,651 16,120 14,651 Transportation-out Interest Revenue Beg. Bali Beg. Bal 830 40019. Bal 8301 400 Beg. Bal Gain on Sale of Land of 0 2,9008 Bal 2,900