reporting sales transactions between wholesale and retail merchandisers using perpetual inventory system's

- prepare the journal entries new books would record 1-5

The transactions listed below are typical of those involving New Books incorporated and Reoders' Corner. New Bocksis a wholesale merchandiser and Readers Corner is a retall merchandiser Assume all sales of merchanoise from New Books to Readers: Comer are made with tems ni30. and the wo companles use perpetual inventory systems Assume the tollowing transactions between the two companles occurred in the ordertisted duting the yeor ended August 31. Q. Nev. BoOks sold merchandse to Readers Corner at a selung price of 5570,000 the mercrandise had cost New Books 12 Two days fater. Readers Comer compiained to New Books that some of the me monanolse ciffered from what Readers' 5423902 Comer had oidered New Books agreac to give an aliowance of $12,000 to Readers cemer Resders Comer aiso returned some oooks. Witich nod cost Nav Books $2,400 and nad been soid te Reade c' comer for $3,900. C lust toree days later, Readers Cornerodd New Booksivhicn setted a anouns owed Journal entry worksheet Record the sales on account of 5570,000 to Readers' Corner on terms n/30. Note: Enter debits before credits. 1 Record the sales on account of 5570,000 to Readers' Corner on terms n/30. 2 Record the cost of goods sold of 5423,000 . 3 Record the returns and allowances granted to Reader's Corner. 4 Record the cost of goods sold adjustment to inventory. 5 Record the receipt of payment in full from Readers' Corner