Powell Company began the Year 3 accounting period with $34,000 cash, $72,000 inventory, $53,000 common stock, and $53,000 retained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $46,000 for $97,000 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $800 cash. 3. Received returned goods from Prentise. The goods cost Powell $5,400 and were sold to Prentise for $6,900. 4. Granted Prentise a $2,400 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $77,000 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. Req A Req B1 Req B2 Req 83 Req C Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a minus sign. In the e to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the account is not affected by every cell will require entry.)