Purchased merchandise on account that cost $4,210. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. Returned $475 of damaged merchandise for credit on account. Agreed to keep other damaged merchandise for which the company received a $280 allowance. Sold merchandise that cost $2,660 for $4,770 cash. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200 cash. Paid $2,860 on the merchandise purchased in Event 1.

Organize appropriate ledger accounts under an accounting equation. Record the beginning balances and the transaction data in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts.