Required information The following information applies to the questions displayed below Powell Company began the Year 2 accounting period with $18,400 cash, $61,600 inventory, $49,600 common stock, and $30,400 retained earnings. During Year 2, Powell experienced the following events: 1 Sold merchandise that cost $37,500 for $76,200 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $320 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,890 and were sold to Prentise for $3,950. 4. Granted Prentise a $1,020 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,900 cash from accounts receivable