reporting purchase transactions between a wholesale and retail merchandiser is using perpetual inventory systems

-prepare the journal entries

The transactions listed below are typlcal of those involving New Books incorporated and Readers' Comer. New Books 15 a Wholesale merchandiser and Readers' Comer is a retall merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms n/30. and the two compantes use perpetual Inventory systems. Assume the following transactlons between the two compantes occurred in the order listed during the year ended August:31. a. New Books sold merchandise to. Readers' Comer at a selling price of 5600,000 . The merchandise had cost New Books 5435,000 b. Two days later, Readers" Comer complained to New Books that some of the merchandise differed from what Readers" Cornerhad ordered. New Books agreed to give an allowance of $15,000 to Readers' Comer. Readers' Corner also returned some books, which had cost New Books $3,000 and had been sold to Readers Comer for $4,500 No further returns are expected. c. Just three cays tater, Readers' Corner paid New Books, which settied all amounts owed 2. Prepare the journal entries that Readers' Comer would record. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.) Journal entry worksheet 3 Record the purchase of $600,000 on account. Note: Enser debita before credita. Journal entry worksheet