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Required information [The following information applies to the questions displayed below. The beginning account balances for Terry's Auto Shop as of January 1, 2018, follows: Account Titles Cash Inventory Common Stock Retained Earnings Beginning Balance $6,140 3,120 7,460 1,800 The following events affected the company during the 2018 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 $265 cash. 3. Returned $500 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $265 allowance. 5. Sold merchandise that cost $2,600 for $4,820 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $190 cash. 7. Paid $2,900 on the merchandise purchased in Event 1