The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Cash Beginning Balances Inventory Common Stock Retained Earnings $6,030 3,040 7,420 1,650 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,190. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $210 cash. 3. Returned $485 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $270 allowance. 5. Sold merchandise that cost $2,680 for $4,870 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $110 cash. 7. Paid $2,820 on the merchandise purchased in Event 1.