Required information Problem 4-26A Comprehensive cycle problem: Perpetual system LO 4-2, 4-3, 4-4, 4-5, 4-6, 4-7 [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: Cash Inventory Land Common stock Retained earnings $17,800 8,000 2,800 17,000 11,600 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,000 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $880 were paid in cash. 2. Returned $850 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $8,500 for $16,500 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,600 and was sold to the customer for $2,900 cash. The customer was paid $2,900 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $770 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,100. 9. Recognized accrued interest income of $650. 10. Took a physical count indicating that $7,300 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.) Problem 4-26A Part e e. Use a single general journal to close all revenue, gain, and expense accounts to the retained earnings account. Post the journal entry to the ledger accounts created in Part c and prepare a post-closing trial balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required information Journal entry worksheet < 1 Record entry to close all revenue, gain, and expense accounts to the retained earnings account. Note: Enter debits before credits. Date Dec 31 General Journal + Debit Credit