Maxwell company uses the FIFO method to assign costs to inventory and cost of goods sold. The company uses a periodic inventory system. Consider the following information. Date Description # of units Cost per unitJanuary 1 Beginning inventory 230 $4June 2 Purchase 85 $3 November 5 Sales 255 What amounts would be reported as cost of goods sold and ending inventory balances for the year?A. Cost of goods sold $1, 020; Ending inventory $160.B. Cost of goods sold $1, 095; Ending inventory $210.C. Cost of goods sold $935; Ending inventory $240.D. Cost of goods sold $995; Ending inventory $180.

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: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?