The scenario approach to strategic planning involves:A. devising plans for coping with a number of different possible future states of the world. B. designing the best organizational structure and the best culture and control systems to put a chosen strategy into action. C. functional-level managers setting key corporate objectives. D. anticipating the reoccurrence of problems that were previously encountered and designing solutions accordingly. E. designing plans for problems that the company believes it will most certainly face in the near future.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?