Required information Exercise 4-16A Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2,4-4, 4-7 [The following information applies to the questions displayed below. Powell Company began the Year 2 accounting period with $19,100 cash, $60,500 inventory, $49,500 common stock, and $30,100 retained earnings. During Year 2, Powell experienced the following events 1. Sold merchandise that cost $36,900 for $75,700 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $325 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,900 and were sold to Prentise for $4,000, 4. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $53,800 cash from accounts receivable, Exercise 4.16A Part b b. Open general ledger T-accounts with the appropriate beginning balances and post the journal entries to the T-accounts. Cash Accounts Receivable Beg. Bal Bog. Bal End, Bal End, Bal Merchandise Inventory Common Stock Beg. Bal Bog. Bal End. Bal End. Bal Retained Earnings Sales Revenue Bea, Bal Beg. Bal Required information F4 End. Bal End, Bal Merchandise Inventory Common Stock Beg Bal Beg Bal 3 End, Bal End. Bal Retained Earnings Sales Revenue Bog. Bal Bog. Bal ht nt End, Bal End, Bal ances Cost of Goods Sold Transportation-out Beg Bal Beg. Bal End. Bal End. Bal