The following events affected the company during the 2013 accounting period: 1. Purchased merchandise on account that cost $12,000. 2. The goods in Event l were purchased FOB shipping point with freight cost of $800 cash 3. Returned $2, 600 of damaged merchandise for credit on account. 4 Agreed to keep other damaged merchandise for which the company received an $1, 100 allowance. a5. Sold merchandise that cost $12,000 for $21, 500 cash. 6 Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $500 cash. Paid $8,000 on the merchandise purchased in Event 1