Business, 31.10.2019 07:31 texas101st78

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events 1. sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. 2. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. 3. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. 4. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. 5. collected partial payment of $81,000 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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Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common...