Powell Company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. During 2018, Powell experienced the following events:

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.

Prepare an income statement for Powell Company.

POWELL COMPANY
Income Statement
For the Year Ended December 31, 2018
	0
	$0

Options are : Accounts payable, Accounts receivable, Advertising expense, cash, common stock, consulting revenue, Costs of goods sold, Gain on sale of land, Interest expense, interest receivable, interest revenue, land, merchandise inventory, miscellaneous expense, net sales, notes payable, rent expense, retained earnings, salaries expense, sales discounts, sales returns and allowances, transportation-out, utilities expense.