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: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,250. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $410 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $235 allowance. 5. Sold merchandise that cost $2,610 for $13,900 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $145 cash. 7. Paid $2,810 on the merchandise purchased in Event 1. 8. Paid $8,700 cash for operating expenses. 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: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,250. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $410 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $235 allowance. 5. Sold merchandise that cost $2,610 for $13,900 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $145 cash. 7. Paid $2,810 on the merchandise purchased in Event 1. 8. Paid $8,700 cash for operating expenses