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The following information applies to the questions displayed below] The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions is a

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The following information applies to the questions displayed below] The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions is a wholesale merchandiser and American Fashions is a retall merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms n/60, and the two companies use perpet Assume the following transactions between the two companies occurred in December 31 . Amalgamated the order listed during the year ended Amalgamated sold merchandise to American Fashions at a selling price of $300,000. The merchandise had cost Amalgamated $203,000 a. b. Two days later, American Fashions returned goods that had been sold to the company at a price of $33,500 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $6,500 to American Fashions. The goods returned by American Fashions had cost Amalgamated $22,270 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 NE for no effect) of each transaction on the Inventory balance of American Fashions. (Enter all amounts as positive values.) 1 2 of of 15! Next > 15l! ordered. Amalgamated agreed to give an allowance of $6,500 to American Fashions. The goods returned by American Fashions had cost Amalgamated $22,270 c Just three days later, American Fashions paid Amalgamated, which settled all amounts Required I. Indicate the amount and direction of the effect (+ for increase,-for decrease, and NE for no effect) of each transaction on the Inventory balance of American Fashions. (Enter all amounts as positive values.) Effect orn C. 12 of 15 Next

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