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 a. Amalgamated sold merchandise to American Fashions at a selling price of $315,000. The merchandise had cost Amalgamated $209,000. b. Two days later, American Fashions returned goods that had been sold to the company at a price of $36,500 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $5,000 to American Fashions. The goods returned by Americarn Fashions had cost Amalgamated $23,770. 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.) Journal entry worksheet Record the allowance and returns of $5,000 granted to American Fashions Note: Enter debits before credits stimated Returns 23