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: Cash Inventory Common Stock Retained Earnings Beginning Balances $6,130 3,150 7,350 1,930 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 freight cost of $280 cash. 3. Returned $400 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $205 allowance. 5. Sold merchandise that cost $2,580 for $4,780 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $155 cash. 7. Paid $2,990 on the merchandise purchased in Event 1. Required