Powell Company began the 2016 accounting period with $19,100 cash, $60,800 inventory, $48,800 common stock, and $31,100 retained earnings. During 2016, Powell experienced the following events: 1. Sold merchandise costing $36,200 for $76,000 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $365 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,940 and were sold to Prentise for $3,960. 4. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,500 cash from accounts receivable. Requireda. Record the events in general journal format. Required a. Record the events in general journal format. (If no entry is required for a transaction/event, select No journal entry required in the first account field.) view transaction list view general journal Journal Entry Worksheet 1 2 3 4 5 6 Sold merchandise for $76,000 on account to Prentise Furniture Store. General Journal Debit Credit Date 1a. *Enter debits before credits done clear entry record entryb. Open general ledger T-accounts with the appropriate beginning balances and post the journal entries to the T-accounts.c. Prepare an income statement, balance sheet, and statement of cash flows. d. Why would Prentise agree to keep the damaged goods?
