During Year 3, Powell experienced the following events

: 1. Sold merchandise costing $61,500 for $106,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $700 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,700 and were sold to Prentise for $7,200. 4. Granted Prentise a $3,700 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $87,500 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?

html?_con=con&external_browser=0&launchurl=https%253A%252F%252Fshsul Cer 3 Homework Assignment * Saved Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Reg B3 Reqc Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a minus sign. In th 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 every cell will require entry) es Event No. POWELL COMPANY Financial Statements Model for Year 3 Stockholders' Equity Income Statement Common Retained Revenue - Net Stock Earnings Expenses - Income 67,000+ 73.000 Assets Accounts Receivable Cash + Inventory Statement of Cash Flows Bal 47,000+ 93,000 1a 1b 2 3b 5. Total 47,000+ 0 93,000 67,000 73,000 0 0 0 0 Reg Req31 > Complete this question by entering your answers in th Req A Req B1 Req B2 Req B3 Prepare an income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 0 Operating expenses $ 0 Complete this question by entering your answers in th Req A Req B1 Req B2 Req B3 Prepare an income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 0 Operating expenses $ 0