Powell Company began the Year 2 accounting period with $18,000 cash, $60,200 inventory, $49,400 common stock, and $28,800 retained earnings. During Year 2, Powell experienced the following events:

2. Sold merchandise that cost $37,000 for $75,500 on account to Prentise Furniture Store.
4. Delivered the goods to Prentise under terms FOB destination. Freight costs were $395 cash.
6. Received returned goods from Prentise. The goods cost Powell $1,980 and were sold to Prentise for $3,970.
8. Granted Prentise a $1,000 allowance for damaged goods that Prentise agreed to keep.
10. Collected partial payment of $53,600 cash from accounts receivable.

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

Answer rating: 100% (QA)

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