Help Save & Exit Check my Powell Company retained earnings. During 2018, Powell experienced the following events: began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 1. Sold merchandise costing $58,000 for $99,500 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 $4,000 and were sold to Prentise for $5,900. 4. Granted Prentise a $3,000 allowance for damaged goods that Prentise agreed to keep. 5. 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. Check LL COMPA Financial Statements Model for 2018 Assets Stockholders Equity Income Statement Accounts Inventory Stock Receivable Retained Revenue Earni Net No. Cash + -Expenses 40,000+ +| 86,000 | = 60,00066,000 1a. 1b. 0 0 0 40,000+ 086,0006 60,000+66,000 Total Req B1> prepare an incorme statement for Powell Company POWELL COMPANY Income Statement For the Year Ended December 31, 2018 Net sales Sales returns and allowances Gross margin Operating expenses $ 99,500 (8,900) 90,600 Cost of goods sold Net income (54,000) 36,600 Req A