$9$

Required information

$[$The following information applies to the questions displayed below.$]$

The transactions listed below are typical of those involving New Books Incorporated and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms $\frac{n}{30},$ and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August $31.$

a$.$ New Books sold merchandise to Readers' Corner at a selling price of $$565,000.$ The merchandise had cost New Books $$421,000.$

b$.$ Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $$11,500$ to Readers' Corner. Readers' Corner also returned some books, which had cost New Books $$2,300$ and had been sold to Readers' Corner for $$3,800.$

c$.$ Just three days later, Readers' Corner paid New Books, which settled all amounts owed.

Required:

For each of the events $($a$)$ through $($c$),$ indicate the amount and direction of the effect on New Books in terms of the following items. $($Enter any decreases to account balances with a minus sign.$)$

$\backslash$table$[[$Transaction$,\backslash$table$[[$Sales$],[$Revenues$]],\backslash$table$[[$Sales$],[$Returns$]],\backslash$table$[[$Sales$],[$Allowances$]],$Net Sales,$\backslash$table$[[$Cost of$],[$Goods Sold$]],$Gross Profit$],[$a$.,,,,,,],[$b$.,,,,,,],[$c$.,,,,,,]]$