An online data entry program is used for original entry of vendor invoices. A batch check-writing program occasionally prepares a check for a vendor not yet included in the vendor file. Checks for such vendors contain nonsense characters in the payee field. The most effective programmed control to prevent this kind of error is to perform

1. A record lookup for vendors during data entry.
2. A verification of vendors in the check-writing program.
3. A completeness test on fields in the check-writing program.
4. A batch control total check on vendor payments.

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?