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Please just make the T accounts. In particular make sure the retained earnings T account is correct. ง At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash Inventory Land Common stock Retained earnings $13,300 5,500 3,200 10,000 12,000 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $920 were paid in cash the responsible party. 2. Returned $550 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 $10,000 for $18,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,800 and was sold to the customer for $2,300 cash. The customer was paid $2,300 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash by the responsible party. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300. 10. Took a physical count indicating that $4,300 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.

Please just make the T accounts. In particular make sure the retained earnings T account is correct. ง At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash Inventory Land Common stock Retained earnings $13,300 5,500 3,200 10,000 12,000 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $920 were paid in cash the responsible party. 2. Returned $550 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 $10,000 for $18,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,800 and was sold to the customer for $2,300 cash. The customer was paid $2,300 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash by the responsible party. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300. 10. Took a physical count indicating that $4,300 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please just make the T accounts. In particular make sure the retained earnings T account is correct. At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash Inventory Land Common stock Retained earnings $13,300 5,500 3,200 10,000 12,000 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $920 were paid in cash the responsible party. 2. Returned $550 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 $10,000 for $18,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,800 and was sold to the customer for $2,300 cash. The customer was paid $2,300 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash by the responsible party. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300. 10. Took a physical count indicating that $4,300 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.
Transcribed Image Text:Please just make the T accounts. In particular make sure the retained earnings T account is correct. At the beginning of Year 2, the Redd Company had the following balances in its accounts. Cash Inventory Land Common stock Retained earnings $13,300 5,500 3,200 10,000 12,000 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $920 were paid in cash the responsible party. 2. Returned $550 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 $10,000 for $18,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,800 and was sold to the customer for $2,300 cash. The customer was paid $2,300 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $810 were paid in cash by the responsible party. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,900. 9. Recognized accrued interest income of $300. 10. Took a physical count indicating that $4,300 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.
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