The following listing of accounts pertains to Benji's Grocery as of January 1, Year 2:Account TitleBeginning BalancesCash$21,000Accounts receivable3,000Merchandise inventory40,000Accounts payable3,000Common stock33,000Retained earnings28,000The following events occurred in Year 2. Assume that Benjis uses the periodic inventory method.1. Purchased land for $8,000 cash.2. Purchased merchandise on account for $86,000, terms 3/10, n/45.3. Paid freight of $500 cash on merchandise purchased FOB shipping point.4. Returned $2,600 of defective merchandise purchased in Event 2.5. Sold merchandise for $76,000 cash.6. Sold merchandise on account for $75,000, terms 1/10, n/30.7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.8. Paid $10,600 cash for selling expenses.9. Collected $40,000 of the accounts receivable from Event 6 within the discount period.10. Collected $35,000 of the accounts receivable but not within the discount period.11. Paid $5,400 of other operating expenses.12. A physical count indicated that $46,600 of inventory was on hand at the end of the accounting period.

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