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

Account Titles
Cash	$ 14,700
Inventory	3,120
Common Stock		$ 7,350
Retained Earnings		10,470
Total	$ 17,820	$ 17,820

The following events affected the company during the Year 2 accounting period:

1. Purchased merchandise on account that cost $4,210.
2. The goods in Event 1 were purchased FOB shipping point with freight cost of $285 cash.
3. Returned $480 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company received an additional $270 credit on account.
5. Sold merchandise that cost $2,590 for $13,400 cash.
6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $115 cash.
7. Paid $2,920 on the merchandise purchased in Event 1.
8. Paid $8,650 cash for operating expenses.