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ducation.com/ext/map/index.html?_con=con&extemal besertach 2252P02Fbbragaraccanto work Problems (REQUIRED) PA6-1 (Algo) Reporting Purchase Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory Systems (LO 6-3) [The following information applies to the questions displayed below) The transactions listed below are typical of those involving New.Books Incorporated and Readers Comer New Books wholesale merchandiser and Readers Corner is a real merchandiset Assumes of merchandise from New Bus to Readers' Corner are made with terms 1/30, 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 a New Books sold merchandise to Readers' Comer at a seling price of $555 000. The merchandise had cost News $417,000 b. Two days later Readers' Corner complained to New Books that some of the merchandise differed from where Corner had ordered. New Books agreed to give an allowance of $10.500 to Readers' Corner Readers Corner retumed some books, which had cost New Books $2,100 and had been sold to Readers' Corner for 53 600 No returns are expected c Just three days later Readers Comer paid New Books, which settled all amounts owed PA6-1 (Algo) Part 2 2. Prepare the journal entries that Readers Comer would record. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) SOS * 3 o ch View transaction list Journal entry worksheet 1 2 3 Record the purchase of $555,000 on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 555,000 a Accounts Payable Cash 555,000

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