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: 1. Sold merchandise that cost $58,000 for $99,500 on account to Prentise Furniture Store 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $900 cash 3. Received returned goods from Prentise. The goods cost Powell $4,000 and were sold to Prontise for $5,900, 4. Granted Prentise a $3,000 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $81,000 cash from accounts receivable. d. Why would Prentise agree to keep the damaged goods? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes teft with a question mark will be automatically graded as incorrect.) Check All That Apply Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Keep inventory levels high. Avoid losses on damaged goods