Cash $22,800 Inventory 4,000 Common stock 2.900 Retained earnings 11,700 During Year 2, the company experienced the following events:

At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $22,800 Inventory 4,000 Common stock 2.900 Retained earnings 11,700 During Year 2, the company experienced the following events: 1.Purchased inventory that cost $12,100 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $890 were paid in cash. 2.Returned $900 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 $8,500 for $16,500 on account, under terms 2/10, n/45. 5.Received merchandise returned from a customer. The merchandise originally cost 1650 and was sold to the customer for $2000 cash. The customer was paid $2000 cash for the returned merchandise. 6.Delivered goods FOB destination in Event 4. Freight costs of $780 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5,300 9. Recognized accrued interest income of $700 10. Took a physical count indicating that $3,500 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.