Required information

$[$The following information applies to the questions displayed below.$]$

Powell Company began the Year $2$ accounting period with $$40,000$ cash, $$86,000$ inventory, $$60,000$ common stock, and $$66,000$ retained earnings. During Year $2,$ Powell experienced the following events:

Sold merchandise that cost $$58,000$ for $$99,500$ on account to Prentise Furniture Store.

Delivered the goods to Prentise under terms FOB destination. Freight costs were $$900$ cash.

Received returned goods from Prentise. The goods cost Powell $$4,000$ and were sold to Prentise for $$5,900.$

Granted Prentise a $$3,000$ allowance for damaged goods that Prentise agreed to keep.

Collected partial payment of $$81,000$ cash from accounts receivable.

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.$)$

b$.$ Post the beginning balances and the journal entrues to the T$-$accounts.

c$.$ Prepare a multistep income statment, a balance sheet and a statement of cash flows.