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 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 $650,000. The merchandise had cost New Books $455,000. 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 $13,500 to Readers' Corner. Readers' Corner also returned some books, which had cost New Books $4,000 and had been sold to Readers' Corner for $5,500. No further returns are expected. c. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. 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 Readers' Corner. Answer is complete but not entirely correct. Transaction a. Effect on Inventory Balance 195,000 X 15,000 X No effect 0 b c