Required information PB6-1 (Algo) Reporting Purchase Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory Systems (LO 6-3] [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving Southern Sporting Goods (SSG) and Sports R Us (SRU). SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU 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 December 31. a. SSG sold merchandise to SRU at a selling price of $195,000. The merchandise had cost SSG $122,000. b. Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $2,500 to SRU. SRU also returned some sporting goods, which had cost SSG $19,000 and had been sold to SRU for $23,500. No further returns are expected c. Just three days later SRU paid SSG, which settled all amounts owed. PB6-1 (Algo) Part 1 Required: 1. Indicate the amount and direction of the effect (+ for increase, - for decrease, and No effect) of each transaction on the Inventory balance of SRU. Transaction Effect on Inventory Balance a. b. C. View transaction list Journal entry worksheet 1 2 3 Record the inventory purchased of $195,000 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet Record the sales on account of $150,000 to SRU. Note: Enter debits before credits. General Journal Debit Credit Transaction a(1) Record entry Clear entry View general journal Journal entry worksheet Record the cost of goods sold of $104,000. Note: Enter debits before credits. General Journal Debit Credit Transaction a(2) Record entry Clear entry View general journal Journal entry worksheet Record the receipt of payment in full from SRU. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal