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Required information Exercise 4-16A Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-7 [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $18,000 cash, $60,400 inventory, $49,100 common stock, and $29,300 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $37,000 for $76,000 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $330 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,820 and were sold to Prentise for $3,910. 4. Granted Prentise a $1,180 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,200 cash from accounts receivable. Exercise 4-16A Part 6 b. Open general ledger T-accounts with the appropriate beginning balances and post the journal entries to the T-accounts. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Merchandise Inventory Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Sales Revenue Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Transportation-out Beg. Bal Beg. Bal End. Bal End. Bal