$(1)$

Required information

Problem $3-26$A $($Algo$)$ Comprehensive cycle problem: Perpetual system LO $3-2,3-3,3-4,3-5,3-6,3-7$

$[$The following information applies to the questions displayed below$]]$

At the beginning of Year $2,$ the Redd Company had the following balances in its accounts:

$\backslash$table$[[$Cash$,$$$7,500$