s Powell Company began the Year 3 accounting period with $31,000 cash, $97,000 inventory, $50,000 common stock, and $78,000 retained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $63,500 for $110,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,000 cash. 3. Received returned goods from Prentise. The goods cost Powell $5,100 and were sold to Prentise for $8,000. 4. Granted Prentise a $3,000 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $91,500 cash from accounts receivable. Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req C Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a mir to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the account is