The following information applies to the questions displayed below.]

The trial balance for Terrys Auto Shop as of January 1, Year 2, follows:

Account Titles	Debit			Credit
Cash	$	14,760
Inventory		3,170
Common Stock				$	7,310
Retained Earnings					10,620
Total	$	17,930		$	17,930

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 $215 cash.

Returned $405 of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $250 allowance.

Sold merchandise that cost $2,630 for $13,000 cash.

Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $150 cash.

Paid $2,840 on the merchandise purchased in Event 1.

Paid $8,600 cash for operating expenses.

b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts.