4 Print rences Seved At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash Inven

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4 Print Rences Seved At The Beginning Of Year 2 The Redd Company Had The Following Balances In Its Accounts Cash Inven 1 (35.61 KiB) Viewed 10 times

4 Print rences Seved At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash Inventory Land Common stock Retained earnings During Year 2, the company experienced the following events: $15,300 7,500 3,600 14,000 12,400 Help Save & Exit Submit Check my work 1. Purchased inventory that cost $12,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $960 were paid in cash. 2. Returned $750 of the inventory it had purchased 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 $11,000 for $20,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $2,000 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 $850 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $6,700. 9. Recognized accrued interest income of $500. 10. Took a physical count indicating that $4,700 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 Required: vain how