Required information [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 $190,000. The merchandise had cost SSG $120,000. 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 $2,000 to SRU. SRU also returned some sporting goods, which had cost SSG $18,500 and had been sold to SRU for $23,000. No further returns are expected c. Just three days later SRU paid SSG, which settled all amounts owed. 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. 2. Prepare the journal entries that SRU would record. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the inventory purchased of $190,000 on account. 2 Record the return of unsatisfactory merchandise for which credit was given. 3 Record the payment in full. Noto - journal entry has hoon entered Credit