FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Powell Company began the Year 2 accounting period with $18,400 cash, $61,200 inventory, $49,200 common stock, and $30,400
- Sold merchandise that cost $37,700 for $75,400 on account to Prentise Furniture Store.
- Delivered the goods to Prentise under terms FOB destination. Freight costs were $345 cash.
- Received returned goods from Prentise. The goods cost Powell $1,960 and were sold to Prentise for $3,910.
- Granted Prentise a $1,110 allowance for damaged goods that Prentise agreed to keep.
- Collected partial payment of $53,200 cash from
accounts receivable .
Required
c. Prepare a multistep income statement, a
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