[The following information applies to the questionsdisplayed below.]The trial balance for Terrys Auto Shop as of January 1, Year 2,follows:Account TitlesDebitCreditCash $4,730 Inventory 3,050 Common Stock $7,460 Retained Earnings $10,320 Total$ 17,780 $24,000 The following events affected the company year 2 purchased merchandise on account that cost $4,170