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 $1100 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $53,800 cash from accounts receivable. Exercise 4-16A Part a Required a. Record the events in general Journal format. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction that Journal entry worksheet T2 5 Journal entry worksheet ALLE 2 3 4 5 6 7 > Sold merchandise for $75,700 on account to Prentise Furniture Store. Note: Enter debits before credits. General Journal Debit Credit Date 1a. Record entry Clear entry View general Journal Journal entry worksheet 1 7 2 3 Record the cost of goods sold of $36,900 on sale. Note: Enter debits before credits General Journal Debit Credit Date 1b ces Record entry Clear entry View general Journal View transaction list Journal entry worksheet eBook Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep Hint Note: Enter debits before credits. Date General Journal Debit Credit Print 4. References Record entry Clear entry View general Journal Journal entry worksheet 1 2 2 3 3 4 4 5 5 6 72 eBook Collected partial payment of $53,800 cash from accounts receivable. Hint Note: Enter debits before credits. Dato General Journal Debit Credit Print 05 o ferences Record entry Clear entry View general Journal