Required information Skip to question [The following information applies to the questions displayed below.] The trial balance for Terrys Auto Shop as of January 1, Year 2, follows: Account Titles Cash $ 14,600 Inventory 3,130 Common Stock $ 7,430 Retained Earnings 10,300 Total $ 17,730 $ 17,730 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,140. The goods in Event 1Required information

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[The following information applies to the questions displayed below.]

The trial balance for Terrys Auto Shop as of January 1, Year 2, follows:

Account Titles
Cash	$ 14,600
Inventory	3,130
Common Stock		$ 7,430
Retained Earnings		10,300
Total	$ 17,730	$ 17,730

The following events affected the company during the Year 2 accounting period:

1. Purchased merchandise on account that cost $4,140.
2. The goods in Event 1 were purchased FOB shipping point with freight cost of $205 cash.
3. Returned $495 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company received an additional$265 credit on account .
5. Sold merchandise that cost $2,670 for $13,400 cash.
6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200 cash.
7. Paid $2,930 on the merchandise purchased in Event 1.
8. Paid $8,570 cash for operating expenses.