Powell company began the year 3 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. During year 3, 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.