The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Credit Debit $ 14,669 3,160 Account Titles Cash Inventory Common Stock Retained Earnings Total $ 7,340 10,480 $ 17,820 $ 17,820 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,280 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash 3. Returned $470 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received an $255 allowance. 5. Sold merchandise that cost $2.640 for $13,900 cash. 6. Delivered merchandise to customers in Event 5 under tems FOB destination with freight costs amounting to $175 cash. 7. Paid $2,830 on the merchandise purchased in Event 1 8. Paid $8,630 cash for operating expenses. ces b. Open general ledger T-accounts with the appropriate besinning balances and post the lournal entries to the T-accounts