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 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$$ Corner at a selling price of $$635,000.$ The merchandise had cost New Books $$449,000.$

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 $$12,000$ to Readers$$ Corner. Readers$$ Corner also returned some books, which had cost New Books $$3,700$ and had been sold to Readers$$ Corner for $$5,200.$ No further returns are expected.

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

PA$6-1($Algo$)$ Part $1$

Required:

Indicate the amount and direction of the effect $(+$ for increase, $$ for decrease, and No effect$)$ of each transaction on the Inventory balance of Readers$$ Corner.