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 js a retail merchandiser. Assume all sales of merchandise from Amalgamated ta 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 fisted during the year ended December 31 . 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. No further returns are expected. c. Just three days later, American Fashions paid Amalgamated, which settled all amounts owed. Required: 1. Indicate the amount and direction of the effect ( + for increase, - for decrease, and No effect) of each transaction on the Inventory balance of American Fashions