Item4 Part 3 of 3 3.33 points HintPrintReferencesItem 4 Required information Skip to question [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $18,400 cash, $61,200 inventory, $49,200 common stock, and $30,400 retained earnings. During Year 2, Powell experienced the following events: Sold merchandise that cost $37,700 for $75,400 on account to Prentise Furniture Store. Delivered the goods to Prentise under terms FOB destination. Freight costs were $345 cash. Received returned goods from Prentise. The goods cost Powell $1,960 and were sold to Prentise for $3,910. Granted Prentise a $1,110 allowance for damaged goods that Prentise agreed to keep. Collected partial payment of $53,200 cash from accounts receivable. Required c. Prepare a multistep income statement, a balance sheet, and a statement of cash flows.Required a. Record the events in general journal format.c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)