amalgamated

3 Required information [The following information applies to the questions displayed below] Part 1 of 2 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 points a. Amalgamated sold merchandise to American Fashions at a selling price of $250,000. The merchandise had cost Amalgamated $183,000. b. Two days later, American Fashions returned goods that had been sold to the company at a price of $23,500 and merchandise differed from what American Fashions had complained to Amalgamated that some of t ordered. Amalgamated agreed to give an allowance of $7000 to American Fashions. The goods returned by American Fashions had cost Amalgamated $17,27o c Just three days later, American Fashions paid Amalgamated, which settled all amounts owed. Required: 1. For each of the events (a) through (d, indicate the amount and direction of the effect on Amalgamated Textiles in terms of the following items. (Enter any decreases to account balances with a minus sign.) 3 Answer is complete but not entirely correct. Cost of CG Sales Returns Al Net Sales Gross Profit Transaction 183,000 250,000 30,500) 50,000 7,000 23,5007,000( (17270)(47,770) O