12 Required information [The following information applies to the questions displayed below) The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms n/60, 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 December 31 + ces a. Amalgamated sold merchandise to American Fashions at a selling price of $310,000. The merchandise had cost Amalgamated $207,000. b. Two days later, American Fashions returned goods that had been sold to the company at a price of $35,500 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $4,500 to American Fashions. The goods returned by American Fashions had cost Amalgamated $23,270. c. Just three days later, American Fashions paid Amalgamated, which settled all amounts owed. 2. Prepare the journal entries that Amalgamated Textiles would record. TIP: When using a perpetual Inventory system, the seller always makes two journal entries when goods are sold. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the sales on account of $310,000 to American Fashions on terms n/60. Note: Enter debits before credits. General Journal Debit Credit Transaction a(1) Accounts Receivable Sales Revenue Record entry Clear entry View general Journal N 2 3 4 5 Record the cost of goods sold of $207,000. Note: Enter debits before credits. Debit Credit Transaction a(2) General Journal Cost of Goods Sold Inventory Record entry Clear entry View general Journal Required information 1 2 3 5 Record the allowance and returns of $4,500 granted to American Fashions. Note: Enter debits before credits. Transaction General Journal b(1) Sales Revenue Accounts Receivable Dobit Credit Record entry Clear entry View general journal information