Delivered the goods to Prentise under terms FOB destination. Freight costs were $$900$ casn.

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

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.

Req A

Req B$3$

Record the events in a statements model shown below. $($Enter any decreases to account balances and cash outflows with a minus sign. In the C$$s Flow column, use the initials OA 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 blank. Not every cell will require entry.$)$

$\backslash$table$[[$POWELL COMPANY$],[$Financial Statements Model For Year $3],[\backslash$table$[[$Event$],[$No$.]],$Assets,$\backslash$table$[[=$