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$$ Corner are made with terms n$/30,$ and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August $31.$ a$.$ New Books sold merchandise to Readers' Corner at a selling price of $$560,000.$ The merchandise had cost New Books

$$419,000.$

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 $$11,000$ to Readers' Corner. Readers' Corner also

returned some books, which had cost New Books $$2,200$ and had been sold to Readers' Corner for $$3,700.$

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

Required:

For each of the events $($a$)$ through $($c$),$ 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.$)$

New Books sold merchandise to Readers$$ Corner at a selling price of $$560,000.$ The merchandise had cost New Books $$419,000.$

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 $$11,000$ to Readers$$ Corner. Readers$$ Corner also returned some books, which had cost New Books $$2,200$ and had been sold to Readers$$ Corner for $$3,700.$

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

Required:

For each of the events $($a$)$ through $($c$),$ indicate the amount and direction of the effect on New Books in terms of the following items.