Required Information [The following information applies to the questions displayed below.] The transactions listed below are typical of those involving New Books Inc. and Readers' Comer. New Books is a wholesale merchandiser and Readers' Comer 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 $630,000. The merchandise had cost New Books $447.000. b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Comer had ordered, New Books agreed to give an allowance of $11,500 to Readers' Corner, Readers' Corner also returned some books, which had cost New Books $3,600 and had been sold to Readers' Corner for $5,100. c. Just three days later, Readers' Corner poid New Books, which settled all amounts owed. Required: 1. For each of the events (c) through (4). indicate the amount and direction of the effect on New Books in terms of the following items. (Enter any decreases to account balances with a minus sign.) Transaction Sales Revenues Sales Returns Sales Allowances Net Sales Cost of Goods Sold Gross Pront The transactions listed below are typical of those involving New Books Inc. and Readers' Corner, New Books is a wholesale merchandiser and Readers' Comer 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' Comer at a selling price of $630,000. The merchandise had cost New Books $447,000. b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Comer had ordered. New Books agreed to give on allowance of $11,500 to Readers' Corner. Readers' Corner also returned some books, which had cost New Books $3,600 and had been sold to Readers' Corner for $5.100. c. Just three days later. Readers' Corner paid New Books, which settled all amounts owed. 2. Prepare the journal entries to record New Books transactions. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction Bat Journal entry worksheet Record the sales on account of $630,000 to Readers' Corner on tets / 10 General ouma Debit Credit following tronco uween uie WWU LUM ULLI 0. New Books sold merchandise to Readers' Comer at a selling price of $630,000. The merchandise had cost New $447,000 b. Two days later, Readers' Comer complained to New Books that some of the merchandise differed from what Rear Comer had ordered. New Books agreed to give an allowance of $11,500 to Readers' Comer. Readers' Corner als returned some books, which had cost New Books $3,600 and had been sold to Readers' Comer for $5,100. c. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. 2. Prepare the journal entries to record New Books transactions. (If no entry is required for a transaction/event, select "Ne Entry Required in the first account field.) View transaction et Journal entry worksheet Record the cost of goods sold of $447,000 Transaction General Journal Debit Credit Journal entry worksheet Record the return of $16.500 unsatisfactory merchandise by Readers Corner for which credit was given to the customer NO Entdebes belore credits Transaction General Journal Debit Credit DEL TELUT Journal entry worksheet
