In a general partnership, each partner is personally liable for:

a. the partnership debts that he or she created.
b. his or her proportionate share of all partnership debts regardless of which partner incurred that debt.
c. the total debts of the partnership, even if he or she was unaware of those debts.
d. the debts of the partnership up to the amount he or she invested in the firm.
e. all personal and partnership debts incurred by any partner, even if he or she was unaware of those debts.

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?