Uwer boo Saved Help Save & Exit Submit Check my work 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. a. Amalgamated sold merchandise to American Fashions at a selling price of $235,000. The merchandise had cost Amalgamated $177,000. b. Two days later, American Fashions returned goods that had been sold to the company at a price of $20,500 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $5,500 to American Fashions. The goods returned by American Fashions had cost Amalgamated $15,770. c. Just three days later, American Fashions paid Amalgamated, which settled all amounts owed. Required: 1. For each of the events (a) through (C), indicate the amount and direction of the effect on Amalgamated Textiles in terms of the following items. (Enter any decreases to account balances with a minus sign.) Sales Allowances Net Sales Sales Returns Cost of Goods Sold Gross Profit Transaction Sales Revenues 235,000 177,000 20,500 5,500 b