2 Chapter 6 Exercises suggested Sites. Web Slice Gallery The following information applies to the questions dsplayed below] The trensactions listed below are typical of those involving New Books Inc. and Readers' Cormer. New Books s a wholesale merchandiser and Readers' Corner is a retall merchandiser. Assume all sales of merchandise to Readers' Comer are made with terms 2no, nv30, and that the two companies use companies occurred in the perpetual Inventory systems. Assume the following transactions between the two order Isted during the year ended August 31 a New Books sold merchendise to Readers' Comer at a seling price of $550,000. The merchandise had cost New Books $415,000 b. Two days later, Readers Corner, complained to New Books that some of the merchandise differed from what Reeders Corner had ordilred. New Books agreed to give an allowance of $10,000 to Readers Corner an allowance of $10,000 to Readers c Just three days later, Readers Comer paid New Books, which settled all amounts owed 7 833 points Required: 1. Indicate the effect (direct tion and amount) of each transaction on the Inventory balance of Readers Comer. (Enter all amounts as positive values.) Effect on Transaction Inventory Balance 550,000 10,000 C. DOLL F2