[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. New Books sold merchandise to Readers Corner at a selling price of $650,000. The merchandise had cost New Books $455,000. 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. Just three days later, Readers Corner paid New Books, which settled all amounts owed. Prepare the journal entries that Readers Corner would record. Record the purchase of $650,000 on account. Record the return of unsatisfactory merchandise for which credit was given. Record the payment in full. 2/ Prepare the journal entries to record New Books transactions. Record the sales on account of $640,000 to Readers Corner on terms n/30. Record the cost of goods sold of $451,000. Record the return of $17,800 unsatisfactory merchandise by Readers Corner for which credit was given to the customer. Record the cost of goods sold adjustment to inventory. Record the receipt of payment in full from Readers Corner. Coreys Campus Store has $4,000 of inventory on hand at the beginning of the month. During the month, the company buys $41,000 of merchandise and sells merchandise that had cost $30,000. At the end of the month, $13,000 of inventory is on hand. How much shrinkage occurred during the month? nventory at the beginning of the year cost $13,400. During the year, the company purchased (on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for $95,000. At the end of the year, inventory was counted and its cost was determined to be $17,400. Required: Show the cost of goods sold equation using these numbers. What was the dollar amount of Gross Profit? What was the dollar amount of Gross Profit?