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, follow: Account Titles Beginning Balances Cash $6,120 Inventory 3,150 Common Stock 7,400 Retained Earnings 1,870 32 The following events affected the company during the Year 2 accounting period 1. Purchased merchandise on account that cost $4,280. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $265 cash, 3. Returned $410 of damaged merchandise 4. Agreed to keep other damaged merchandise for which the company received a $215 allowance 5. Sold merchandise that cost $2.740 for $4,940 cash, 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $180 cash 7. Paid $2.950 on the merchandise purchased in Event 1. Required a. Organize appropriate accounts under an accounting equation Record the beginning balances and the transaction data in the accounts. In the last column of the table, provide appropriate input needed for the Retained Earnings amounts. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input- leave 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. Pur Inv 2. Transport 3. Ret Inv. + Allow sa Sales 5b. Cost 6 TA, 7. Paid AP End Bal