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Powell Company began the Year 2 accounting period with $18,000 cash, $60,900 inventory, $49,700 common stock, and $29,200 retained earnings. During Year 2, Powell experienced
Powell Company began the Year 2 accounting period with $18,000 cash, $60,900 inventory, $49,700 common stock, and $29,200 retained earnings. During Year 2, Powell experienced the following events:
- Sold merchandise that cost $37,200 for $75,700 on account to Prentise Furniture Store.
- Delivered the goods to Prentise under terms FOB destination. Freight costs were $320 cash.
- Received returned goods from Prentise. The goods cost Powell $1,820 and were sold to Prentise for $3,930.
- Granted Prentise a $1,190 allowance for damaged goods that Prentise agreed to keep.
- Collected partial payment of $52,600 cash from accounts receivable.
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