B. Anwar El Wakiel prepared draft financial statements (final accounts) for the year ended 30 April
2010.
The following errors were later discovered.
1. A cheque, $170 received from Zubin Khan had been credited to the account of Zaffar Khan,
another debtor
2. Purchase of equipment, $1000, had been debited to the office expenses account.
3. Stationery, $19 had been debited to the purchases account.
4. No entry had been made for sales returns, $25, from Mariam Sitar.
Prepare journal entries to record these errors.

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?