$[$The following information applles 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 retall merchandiser. Assume all sales of merchandise from New Books

to Readers' Corner are made with terms $\frac{n}{30},$ and the two companles 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 $$575,000.$ The merchandise had cost New Books

$$425,000.$

b$.$ Two days later, Readers' Corner complained to New Books that some of the merchandlse 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 $$2,500$ and had been sold to Readers' Corner for $$4,000.$ No further

returns are expected.

c$.$ Just three days later, Readers' Corner pald New Books, which settled all amounts owed.

Required:

Indicate the amount and direction of the effect $(+$ for Increase, $-$ for decrease, and No effect$)$ of each transaction on the Inventory

balance of Readers' Comer.