Joe, jeff and jerry frank own frank brothers farm, a seed company specializing in seed corn. at their weekly meeting they tried to calculate the portion of the farm's overhead expenses that is fixed and the portion that is variable. over the past twelve months, the number of bushels of seed corn that has been sold reached its peak in may, when the total monthly overhead costs totaled $290,000 for 90,000 bushels of seed corn sold. the lowest number of bushels sold in the last twelve months occurred in december, when total overhead costs were $70,000 for 10,000 bushels sold. what is the fixed portion of the monthly overhead expenses?

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?