Problem 4-26A Comprehensive cycle problem: Perpetual system LO 4-2, 4-3, 4-4 The following information applies to the questions displayed below, At the beginning of 2016, the Redd Company had the following balances in its accounts: $16.800 Cash Inventory 000% Common stock Retained earnings 15.000 11,400 During 2016, the company experienced the following events: 1. Purchased inventory that cost $11,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $860 were paid in cash. 2, Returned $750 seller agreed to pay the return freight cost. Paid the amount due on its aceo FOO Company within the e al45 f the inventory that it had purchased because the inventory was damaged in transit. The unt period. 5. Received merchandise returned from a customer. The merchandise originally cost $1,500 and was sold to the customer for $2,700 cash. The customer was paid $2,700 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $750 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 9, Recognized accrued interest income of $550. 10. Took a physical count indicating that $7,100 of inventory was on hand at the end f the accounting period. Problem 4-26A Part b b. Record the events in general journal format. "No journal entry required" in the first account field.) f no entry is required for a transaction/event, select View transaction list Journal entry worksheet 8 3 1 2 4 5 6 7 15 Record entry inventory purchased on account from Ross company terms 2/10, n/30. Note: Enter debits before credits. General Journal Credit Event Debit 1a View general journal Record entry Clear entry