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 $6,100 Cash Inventory Common Stock Retained Earnings 3,080 7,440 1,740 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,180. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $210 cash. 3. Returned $435 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $220 allowance. 5. Sold merchandise that cost $2,720 for $4,780 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $195 cash. 7. Paid $2,950 on the merchandise purchased in Event 1.