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Check All That Apply Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Keep inventory levels high. Avoid losses on
Check All That Apply Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Keep inventory levels high. Avoid losses on damaged goods. Exercise 4-16A (Algo) Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-6, 4-7 [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $19,600 cash, $60,300 inventory, $49,100 common stock, and $30,800 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $37,600 for $75,900 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 $1,920 and were sold to Prentise for $3,940. 4. Granted Prentise a $1,070 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,100 cash from accounts receivable. xercise 4-16A (Algo) Part d Why would Prentise agree to keep the damaged goods? (You may select more than one answer. Single click the box with the question mark to produce a leck mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark ill be automatically graded as incorrect.)
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