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Powell Company began the 2018 accounting period with $49,000 cash, $95,000 inventory, $69,000 common stock,...

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Accounting

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Powell Company began the 2018 accounting period with $49,000 cash, $95,000 inventory, $69,000 common stock, and $75,000 retained earnings. During 2018, Powell experienced the following events: 1. Sold merchandise costing $62,500 for $108,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $800 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,900 and were sold to Prentise for $6,600 4. Granted Prentise a $3,900 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $89,500 cash from accounts receivable. Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods

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