omework (8L04-142.44,46) 6 5 The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follows 8,000 art 2 of 3 Retained Earnings The following events afflected the company during the Year 2 accounting period 1 Purchased merchandise on account that cost $15.000 2 The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash 3 Returned $2.600 of damaged merchandise for credit on account 4 Agreed to keep other damaged merchandise for which the company received a$100 allowance 5. Sold merchandise that cost S15.000 for $31,000 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $500 cash 7. Paid $8.000 on the merchandise purchased in Event 1. an income statement and a statement of cash fiows for Year 2 (Assume that closing entries have been made) 0 Complete this question by entering your answers in the tabs below. Terry Inc Semt Terry Semt CF Prepare an income statement Income Statement For the Year Ended 31, Year 2