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: Cash Inventory Land Common stock $16,800 7,000 2,600 15,000 Retained earnings 11,400 ces During Year 2, the company experienced the following events: 1. Purchased inventory that cost $11,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $860 were paid in cash. 2. Returned $750 of the inventory it had purchased from Ross Company 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 $9,500 for $15,500 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,500 and was sold to the customer for $2,700 cash. The customer was paid $2,700 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $750 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $4,700. 9. Recognized accrued interest income of $550. (To record this entry, debit the asset account Interest Receivable (this account will be on the balance sheet in the asset section and does NOT get closed at year end) and credit the revenue account Interest Revenue (this account is a temporary revenue account recorded on the income statement that gets closed at year end). This entry will be discussed in future chapters and will NOT be tested on Test 2). 10. Took a physical count indicating that $7,100 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.) Part 1 of 4 View transaction list 12 points Skipped eBook Journal entry worksheet 1 2 3 4 5 6 7 8 15 Record entry inventory purchased on account from Ross company terms 2/10, n/30. Print References Mc Note: Enter debits before credits. Event 1a General Journal Debit Credit Record entry Clear entry View general journal