Required information

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

At the beginning of Year $2,$ the Redd Company had the following balances in its accounts:

During Year $2,$ the company experienced the following events:

Purchased inventory that cost $$15,200$ on account from Ross Company under terms $\frac{1}{10},\frac{n}{30}.$ The merchandise

was delivered FOB shipping point. Freight costs of $$200$ were paid in cash.

Returned $$800$ of the inventory that it had purchased because the inventory was damaged in transit. The seller

agreed to pay the return freight cost.

Paid the amount due on its account payable to Ross Company within the cash discount period.

Sold inventory that had cost $$18,000$ for $$32,000$ on account, under terms $\frac{2}{10},\frac{n}{45}.$

Received merchandise returned from a customer. The merchandise originally cost $$800$ and was sold to the

customer for $$1,500$ cash. The customer was paid $$1,500$ cash for the returned merchandise.

Delivered goods FOB destination in Event $4.$ Freight costs of $$140$ were paid in cash.

Collected the amount due on the account recelvable within the discount period.

Took a physical count indicating that $$21,100$ of inventory was on hand at the end of the accounting period.

Required

b$.$ Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA

for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the

cell blank. The first event is recorded as an example. $($Not every cell will require entry. Enter any decreases to account balances

and cash outflows with a minus sign.$)$