The trial balance for Terrys Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 15,040 Inventory 3,160 Common Stock $ 7,430 Retained Earnings 10,770 Total $ 18,200 $ 18,200 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,160. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. Returned $500 of damaged merchandise for credit on account. Agreed to keep other damaged merchandise for which the company received an $245 allowance. Sold merchandise that cost $2,590 for $13,500 cash. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $175 cash. Paid