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 $19,900 cash. $61,400 Inventory, $49,200 common stock, and $32,100 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,300 for $75,900 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $355 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,860 and were sold to Prentise for $3,800. 4. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,800 cash from accounts receivable. Exercise 4-16A (Algo) Part b Required b. Post the beginning balances and journal entries to the T-accounts. Beg Bal Cash 52.800 Accounts Receivable Beg. Bal 52,800 5 End Bal 52,800 End. Bal 52,800