r 4 Required information The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: $14,810 3,160 s 7,420 10,550 $17,970 $17,970 Total The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,200. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $435 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $280 allowance. 5. Sold merchandise that cost $2,730 for $13,100 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $110 cash. 7. Paid $2,870 on the merchandise purchased in Event 1 8. Paid $8,760 cash for operating expenses. b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts