Required information [The following information applies to the questions displayed below. The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Credit Debit $ 14,770 3,130 Account Titles Cash Inventory Common Stock Retained Earnings Total $ 7,410 10,490 $ 17,900 $ 17,900 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,130. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $240 cash. 3. Returned $485 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $200 allowance. 5. Sold merchandise that cost $2,640 for $13,200 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $180 cash. 7. Paid $2,850 on the merchandise purchased in Event 1. 8. Paid $8,710 cash for operating expenses. equired Record the events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in ne first account field.) View transaction list Journal entry worksheet Record entry for purchase of merchandise on account. Note: Enter debits before credits. Event General Journal Debit Credit 01