Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system Powell Company began the 2016 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. During 2016, Powell experienced the following events: Sold merchandise costing $58,000 for $99, 500 on account to Prentise Furniture Store. Delivered the goods to Prentise under terms FOB destination. Freight costs were $900 cash. 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 Record the events in general journal format. Open general ledger T-accounts with the appropriate beginning balances and post the journal entries to the T-accounts. Prepare a multistep income statement, a balance sheet, and a statement of cash flows. Why would Prentise agree to keep the damaged goods? Who benefits more