Required information Exercise 4-12A Effect of purchase returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4. 4-6 [The following information applies to the questions displayed below) The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit $16,000 Inventory 8,000 Common Stock $20,000 Retained Earnings Total Cash 4,000 $24,000 $24,000 The following events affected 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 an $1100 allowance 5. Sold merchandise that cost $15,000 for $31000 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. 8. Pald $9,000 cash for operating expenses. Hel Exercise 4-12A Parta Required a. Record the events in general journal format. (If no entry is required for a transaction/event, select "No journal entry require the first account field.) View transaction list Journal entry worksheet 3 4 5 09 7 8 9 Record entry to return of damaged merchandise for credit on account. Note: Enter debits before credits General Journal Event 03 Debit Credit