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 3/10, n/30, and that 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 $605,000. The merchandise had cost New Books $437,000.
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 $9,000 to Readers Corner.
c.	Just three days later, Readers Corner paid New Books, which settled all amounts owed.

1. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Readers' Corner. (Enter all amounts as positive values.)

Transaction, Inventory balance

a +605,000

b -9,000

c ?

2. Prepare the journal entries that Readers Corner would record and show any computations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

3. Supply the missing dollar amounts for each of the following independent cases.

Cases	Sales Revenue	Beginning Inventory	Purchases	Cost of Goods Available for Sale	Cost of Goods Sold	Cost of Ending Inventory	Gross Profit
A	$1,000	$400	$1,100	$1,500	$660
B	1,200	500	1,100	1,600		460
C		400			500	600	700
D	1,160		900		950	550
E	1,300	350	1,200				860