Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May: May 1 Made cash sales of $8,800; the cost of the inventory was $3,300.
5 Purchased $2,700 of inventory on credit.
9 Made credit sales of $3,500; the cost of the inventory sold was $1,800.
13 Paid sales salaries of $900 and office salaries of $500.
14 Paid for the May 5 purchases.
18 Purchased sales equipment costing $6,800; made a down payment of $1,600 and agreed to pay the balance in 60 days.
21 Purchased $700 of inventory for cash.
27 Sold land that had originally cost $2,000 for $3,100.

Required:
Record the preceding transactions in a general journal.

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?