The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow Account Titles Beginning Balances Cash Inventory Common Stock Retained Earnings $6,118 3,040 7,499 1,678 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 $245 cash. 3. Returned $430 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received a $275 allowance. 5. Sold merchandise that cost $2,690 for $4,810 cash. 6. Delivered merchandise to customers In Event 5 under terms FOB destination with freight costs an 7. Pald $2,950 on the merchandise purchased in Event 1. Required