Homework Saved Help Save & Exit Check The transactions listed below are typical of those involving New Books Inc. and Readers' Comer. 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 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 $570,000. The merchandise had cost New Books $423,000. 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 $12,000 to Readers' Corner, Readers' Corner also returned some books, which had cost New Books $2,400 and had been sold to Readers' Corner for $3,900. c. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. Required: 1. For each of the events() through a 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.) Cost of Sales Returns Net Salon Transaction Sales Allowances Sales Revenues 570.000 Goods Sold Goods Sold Cross Profit 570.000 12.000 2400) Help Save & EX Check 2. Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 Record the sales on account of $570,000 to Readers' Corner on terms 130 Note Ente r ed Transaction General Journal Debit Credit 2. Prepare the journal entries to record New Books transactions. (If no entry is required for a transactio Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the cost of goods sold of $423,000. Note: Enter debits before credits Transaction General Journal Debit Credit a(2) Record entry Clear en View general journal Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the return of $15,900 unsatisfactory merchandise by Readers' Corner for which credit was given to the customer. Note: Enter debits before credits General Journal Debit Credit Transaction b(1) Record entry Clear entry View general journal Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the cost of goods sold adjustment to inventory. Note: Enter debits before credits Transaction General Journal Debit Credit b(2) Record entry Clear entry View general journal 2. Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction/er Entry Required" in the first account field.) View transaction list Journal entry worksheet
