2 Book Hint Prin Powell Company began the Year 3 accounting period with $35,000 cash, $73,000 inventory, $54,000 common stock, and $54,000 retained earnings, During Year 3, Powell experienced the following events: 1. Sold merchandise costing $46,500 for $98,000 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 $4,500 and were sold to Prentise for $6.400 4. Granted Prentise a $2,500 allowance for damaged goods that Prentise agreed to keep.. 5. Collected partial payment of $78,000 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? Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg 82 Req 83 Req C Check my work Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a minus sign In the Cash Flow colume, use the to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the account is not affected by the event, leave the cell b every cell will require entry) Assets POWELL COMPANY Financial Statements Model for Year 3 Stockholders' Equity Gammon Income Statement Statement of Casti Retained Revenue Net Flows Expenses