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.

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 is a retall merchandiser. Assume all sales of merchandise from Amalgamated to American Fashlons 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. a. Amaigamated soid merchandise to American Fashions at a selling price of $285,000. The merchandise had cost Amaigamated $197,000. b Two days later, American Fashions returned goods that had been sold to the company at a price of $30,500 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 American Fashions had cost Amaigamated $20,770 c Just three days later, American Fashions paid Amaigamated, which settled all amounts owed. 2. Prepare the journal entries American Fashions would record. TIP: The selling price charged by the seller is the purchasers cost (f no entry is required for a transaction/event, select "No Journal Entry Requilred In the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit a Inventory 285,000 Accounts Payable 285,000