Required information [The following information applies to the questions displayed below! The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Beginning Balances Cash $16,000 Inventory 8,000 Contion Stock 20,000 Retained Earnings 4,000 es 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 rebelved a $1.100 allowance. 5. Sold merchandise that cost $15,000 for $31,000 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. ledve cells blank If there is no corresponding Retained Earnings input needed.) TERRY'S AUTO SHOP Effect of Events on the Financial Statements Assets Liabilities + Stockholders' Equity Accounts Inventory Common Retained Payable Stock Earnings Events Cash Accounts Titles for Retained Earnings Beg Bal 1. 2. 3 4 5a. 5b. 6. 7 End Bal + + 0 0 = 0 + 0 + 0