Required information The foliowing information applies to the questions displayed below/ At the beginning of Year 2 the Redd Company had the folowing balances in its accounts: During Year 2, the company experienced the following events 1. Purchased imventory that cost $5,100 on account from Ross Company under tecms 210, n30. The merchandise was delivered FOB stipping point. Transportation costs of $460 were paid in cash. 2. Returned $300 of the inventory it had purchased because the inventoy was dsmoged in transit. The seber agreed to poy the return transportation cost. 3. Paid the amount due on is account poyable to Ross Compony within the cash discount period. 4. Sold inventory that had cost $5.600 for $8,600 on account, under terms 2/20,n/45. 5. Abceived merchandise returned from a customec, The merchandise originally cost $460 and was sold to the customer for $760 cash. The customer was paid $760 cash for the refurned merchandle. 6. Dellvered poods FOE destinotion in Event 4. Transportation costs of $560 were pald in cash. 7. Collected the amount due on the account receivable within the discount period 8. Took a physical count indicating that $1,300 of imventory was on hand at the end of the accounting perisd. b. Aecord each event in a horizontal financial statements model. Note: in the Cash Flow column, use OA to designate operating activity, if for investment activity, FA for financing acthity, and NC for net changs in cash. Enter any decreases to occeunt balances and cash outflows with a minus sign. Not all ctills in the "statement of Cash Flows" column may require an input - leave cells biank if there is no corresponding input needed. b. Record ench event in s horizoctal financial statements model. b. Record each event in s horizodtal financiai statements modeL Note in the Cash Flow column, use OA to designate operating activity, IA for investment activity. FA for financing activity, and NC