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' 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 $640,000. The merchandise had cost New Books $451,000. 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 $12,500 to Readers' Corner, Readers' Corner also returned some books, which had cost New Books $3,800 and had been sold to Readers' Corner for $5,300. c. Just three days later, Readers' Corner pold New Books, which settled all amounts owed. Required: 1. Indicate the amount and direction of the effect (* for increase. - for decrease, and NE for no effect) of each transaction on the Inventory balance of Readers' Corner. (Enter all amounts as positive values.) Effect on Transaction Inventory Balance b. C Required information (The following information applies to the questions displayed below.) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $11,200 3. Sold merchandise for cash (cost of merchandise $8,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $60 ). C. Sold merchandise (costing $2,375 ) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet 100 5,000 2,500 paid. 80 Required: 1. Compute Net Sales and Gross Profit for Hair World, Answer is complete but not entirely correct. 16,100 Net Sales Gross Profit $ $ 11,1923