Powell Company began the Year 3 accounting period with $45,000 cash, $91,000 inventory, $65,000 common stock, and $71,000 etained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $60,500 for $104,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,200 cash. 8. Received returned goods from Prentise. The goods cost Powell $4,500 and were sold to Prentise for $6,800. 1. Granted Prentise a $3,500 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $85,500 cash from accounts receivable.

Powell Company began the Year 3 accounting period with $45,000 cash, $91,000 inventory, $65,000 common stock, and $71,000 etained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $60,500 for $104,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,200 cash. 8. Received returned goods from Prentise. The goods cost Powell $4,500 and were sold to Prentise for $6,800. 1. Granted Prentise a $3,500 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $85,500 cash from accounts receivable.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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