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Cash 8400Inventory 2000Common stock 8000Retained Earnings 2400During 2012, D & L Enterprises experienced the following events:1. purchased inventory costing 5600 on account from Smoot Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of 500 were paid in cash.2. Returned 400 of the inventory that it had purchased because the inventory was damaged in transit. The freight company agreed to pay the return freight cost.3. Paid the amount due on its account payable to Smoot Co. within the cash discount period.4. Sold inventory that had cost 6000 for 9000. The sale was on account under terms 2/10, n/45.5. Received returned merchandise from a customer. The merchandise had originally cost 520 and had been sold to the customer for 840 cash. The customer was paid 840 cash for the returned merchandise.6. Delivered goods in Event 4 FOB destination. Freight costs of 600 were paid in cash.7. Collected the amount due on accounts receivable within the discount period.8. Took a physical count indicating that 1800 of inventory was on hand at the end of the accounting period.
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