[The following information applies to the questions displayed below.] The beginning account balances for Terrys Auto Shop as of January 1, Year 2, follow: Account Titles Beginning Balances Cash $ 6,150 Inventory 3,040 Common Stock 7,440 Retained Earnings 1,750 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,120. The goods in Event 1 were purchased FOB shipping point with transportation cost of $215 cash. Returned $490 of damaged merchandise. Agreed to keep other damaged merchandise for which the company received a $260 allowance. Sold merchandise that cost $2,580 for $4,760 cash. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs