Nickleson Company had an unadjusted cash balance of $$8,836$ as of May $31.$ The company$$s bank statement, also dated May $31,$ included a $$66$ NSF check written by one of Nickleson$$s customers. There were $$963$ in outstanding checks and $$230$ in deposits in transit as of May $31.$ According to the bank statement, service charges were $$75,$ and the bank collected an $$1,400$ note receivable for Nickleson. The bank statement also showed $$22$ of interest revenue earned by Nickleson.

Required:

Cash $ $7,900$

Inventory $1,900$

Common stock $7,400$

Retained earnings $2,400$

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

Purchased inventory that cost $$5,400$ on account from Ross Company under terms $2/10,$ n$/30.$ The merchandise was delivered FOB shipping point. Transportation costs of $$490$ were paid in cash.

Returned $$450$ of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return transportation cost.

Paid the amount due on its account payable to Ross Company within the cash discount period. Record the discount as $3$a$.$ and the cash payment on the payable as $3$b$.$

Sold inventory that had cost $$5,900$ for $$8,900$ on account, under terms $2/10,$ n$/45.$

Received merchandise returned from a customer. The merchandise originally cost $$490$ and was sold to the customer for $$790$ cash. The customer was paid $$790$ cash for the returned merchandise.

Delivered goods FOB destination in Event $4.$ Transportation costs of $$590$ were paid in cash.

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

Took a physical count indicating that $$1,600$ of inventory was on hand at the end of the accounting period.