Required information [The following information applies to the questions displayed below] At the beginning of 2018, the Redd Company had the following balances in its accounts Cash $16,900 25,eee 30,e00 11,900 Inventory Common stock Retained earnings During 2018, the company experienced the following events: 1. Purchased inventory that cost $15,200 on account from Ross Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $200 were paid in cash 2 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 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10, n/45. 5. 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. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $21,100 of inventory was on hand at the end of the accounting period. REDD COMPANY Horizontal Statements Model 2018 Balance Sheet Income Statementi Assets Accounts Receivable Liabilities Stockholders' Equity Common Stock Event Statement of Cash Flows Net Merchandise Inventory 25.000 Retained Earnings Revenue Expenses Cash Accounts Income Payable Bal. 16.900 30,000 11,900 1a 15,200 15,200 4 1b. (200)+ 200 (200) OA (800) (800)+ (14,256)+ 3. (144) (14,400) (14,256) OA 4a 32.000+ 32,000 32,000 32.000 4b (18,000) (18,000) 18.000 (18.000) (1,500) 5a (1,500)- (1,500) (1,500) OA (1.500 nnn. onne Income Statement Balance Sheet Statement of Cash Flows Stockholders' Equity Retained Earnings Liabilities Assets Net Event Expenses Revenue Income Common Stock Accounts Payable Merchandise Inventory Accounts Cash Receivable 11.900 30,000+ 25,000 16.900 + Bal. 4 15.200 15,200 1a (200) OA 200 (200)+ 1b. (800)+ (800) 2. (14,256) OA (14,400)+ (144) (14,256) 3 32,000 32,000 32,000 32,000 4a (18,000) 18.000 (18,000) 4 (18,000) 4b (1.500) OA (1,500) (1,500) (1,500) 4 5a (1,500) + (800) 800 800 800 5b. (140) OA 140 (140) (140) (140)+ 6 31,360 OA (640) 1,156 (1.156) $ 11.364 (640)- (640) (32.000) 31.360 7 (1,156) $ 23,264 $ 29.860 (1,156) 8 $ 18.496 $ 15.264 0 $30,000 $ 32.164+ $ 21,100 $ Bal Required information [The following information applies to the questions displayed below] At the beginning of 2018, the Redd Company had the following balances in its accounts Cash $16,900 25,eee 30,e00 11,900 Inventory Common stock Retained earnings During 2018, the company experienced the following events: 1. Purchased inventory that cost $15,200 on account from Ross Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $200 were paid in cash 2 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 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $18,000 for $32,000 on account, under terms 2/10, n/45. 5. 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. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $21,100 of inventory was on hand at the end of the accounting period. REDD COMPANY Horizontal Statements Model 2018 Balance Sheet Income Statementi Assets Accounts Receivable Liabilities Stockholders' Equity Common Stock Event Statement of Cash Flows Net Merchandise Inventory 25.000 Retained Earnings Revenue Expenses Cash Accounts Income Payable Bal. 16.900 30,000 11,900 1a 15,200 15,200 4 1b. (200)+ 200 (200) OA (800) (800)+ (14,256)+ 3. (144) (14,400) (14,256) OA 4a 32.000+ 32,000 32,000 32.000 4b (18,000) (18,000) 18.000 (18.000) (1,500) 5a (1,500)- (1,500) (1,500) OA (1.500 nnn. onne Income Statement Balance Sheet Statement of Cash Flows Stockholders' Equity Retained Earnings Liabilities Assets Net Event Expenses Revenue Income Common Stock Accounts Payable Merchandise Inventory Accounts Cash Receivable 11.900 30,000+ 25,000 16.900 + Bal. 4 15.200 15,200 1a (200) OA 200 (200)+ 1b. (800)+ (800) 2. (14,256) OA (14,400)+ (144) (14,256) 3 32,000 32,000 32,000 32,000 4a (18,000) 18.000 (18,000) 4 (18,000) 4b (1.500) OA (1,500) (1,500) (1,500) 4 5a (1,500) + (800) 800 800 800 5b. (140) OA 140 (140) (140) (140)+ 6 31,360 OA (640) 1,156 (1.156) $ 11.364 (640)- (640) (32.000) 31.360 7 (1,156) $ 23,264 $ 29.860 (1,156) 8 $ 18.496 $ 15.264 0 $30,000 $ 32.164+ $ 21,100 $ Bal