3 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 Part 1 of 2 is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Assume the following transactions between the two companies occurred in the order listed during the year ended to American Fashions are made with terms n/60, and the two companies use perpetual inventory systems 6.66 points December 31 a. Amalgamated sold merchandise to American Fashions at a selling price of $310,000. The merchandise had cost Amalgamated $207,000. complained to Amalg ordered. Amalgamated agreed to give an allowance of $4,500 to American Fashions. The goods returned by American b. Two days later, American Fashions returned goods that had been sold to the company at a price of $35,500 and dise differed from what American Fashions had that some of the remaining mer Fashions had cost Amalgamated $23,270. ust three days later, American Fa 1. For each of the events (e) through (d), indicat te the amount and direction of the effect on Amalgamated Textiles in terms of the following tems (Enter any decreases to account balances with Net Salos Cost of Goods Sold Gross Profit 310,000 207.000 40