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quired information he following information applies to the questions displayed below he transactions listed below are typical of those involving Amalgamated Textiles and American Fashions.

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quired information he following information applies to the questions displayed below he transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from malgamated to American Fashions are made with terms n/60, and the two companies use perpetual inventory systems ssume the following transactions between the two companies occurred in the order listed during the year ended December 31 a. Amalgamated sold merchandise to American Fashions at a selling price of $305,000. The merchandise had cost Amalgamated $205,000 Two days later, American Fashions returned goods that Had been sold to the company at a price of $34,500 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $7,000 to American Fashions. The goods returned by American b. Fashions had cost Amalgamated $22,770 C Just three days later, American Fashions paid Amalgamated, which settled all amounts owed 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.) Prev 4 of 15 Next> Required information Journal entry worksheet 0 2 Record the sales on account of $305,000 to American Fashions on terms n/60. Note: Enter debits before credits. Transaction General Journal Credit Record entry Next > 4 of 15 Prev 1 of 15 Required information Journal entry worksheet 2 Record the allowance and returns of $7,000 granted to American Fashions. Note: Enter debits before credits. Transaction eral Journal ces Clear entry Record entry Next > 4 of 15 4 of 15 Prev Journal entry worksheet 2 3 Record the receipt of payment in full from American Fashions Note: Enter debits before credits. Transaction General Journal Debit Clear entry Record entry of 15 Next > 4 K Prev

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