Required information Exercise 4-16A (Algo) Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4.2, 4.4, 4-6, 4.7 [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $20,000 cash, $60,100 inventory, $48,500 common stock, and $31,600 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,800 for $75,100 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $380 cash. 3. Recelved returned goods from Prentise. The goods cost Powoll $1,960 and were sold to Prentise for $3,820. 4. Granted Prentise a $1,160 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $53,700 cash from accounts recelvable. xercise 4-16A (Algo) Part d . Why would Prentise agree to keep the damaged goods? (You may select more than one answer. Single click the box with the question mark to roduce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left ith a question mark will be automatically graded as incorrect.) d. Why would Prentise agree to keep the damaged goods? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Check All That Apply Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods Keep inventory levels high. Aubid losses on damoged goods