Retained Earnings\ 1,810\ The following events affected the company during the Year 2 accounting period:\ Purchased merchandise on account that cost

$4,140

.\ The goods in Event 1 were purchased FOB shipping point with freight cost of

$275

cash.\ Returned

$500

of damaged merchandise for credit on account.\ Agreed to keep other damaged merchandise for which the company received a

$220

allowance.\ Sold merchandise that cost

$2,660

for

$4,810

cash.\ Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to

$135

cash.\ Paid

$2,990

on the merchandise purchased in Event 1.\ b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.)\ Complete this question by entering your answers in the tabs below.\ Income\ Statement of\ Statement\ Cash Flows\ Prepare an income statement.\ \\\\table[[TERRY'S AUTO SHOP,],[Fncome Statement,],[For the Year Ended December 31, Year 2,],[Operating expenses,],[,

$

The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,140. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. 3. Returned $500 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $220 allowance. 5. Sold merchandise that cost $2,660 for $4,810 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $135 cas 7. Paid $2,990 on the merchandise purchased in Event 1. b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.) Complete this question by entering your answers in the tabs below. Prepare an income statement. The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,140. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. 3. Returned $500 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $220 allowance. 5. Sold merchandise that cost $2,660 for $4,810 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $135 cas 7. Paid $2,990 on the merchandise purchased in Event 1. b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.) Complete this question by entering your answers in the tabs below. Prepare an income statement