Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System Riggs Distributing Company had the following transactions with Arlington, Inc., during the month

image text in transcribedimage text in transcribed

Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System Riggs Distributing Company had the following transactions with Arlington, Inc., during the month of November: Nov 10 Riggs sold and shipped $7,000 worth of merchandise (14.500 cost) to Arlington terms 2/10, 1/30 12 Arlington, Inc. paid freight charges on the shipment from Riggs Company, $450 14 Riggs received $600 of merchandise returned by Arlington (5420 cost) from the November 10 sale 19 Riggs received payment in full for the net amount due on the November 10 sale 24 Arlington, Inc. returned goods that had originally been billed at $400 ($280 costs Riggs issued a check for $392 Required Prepare the necessary journal entries (a) on the books of Riggs Distributing Company and (b) on the books of Arlington, Inc. Assume that both companies use the perpetual inventory system. Sellers journal entries Buyer's journal entries RIGGS DISTRIBUTING COMPANY GENERAL JOURNAL Date Nov. 10 Description Sold goods to Arlington, Inc. terms 2/10, n/30 10 Debit Credit Date Nov. 10 Description Sold goods to Arlington, Inc. terms 2/10, n/30. 10 Cost of goods sold to Arlington, Inc. 5 4 0 Debit 0 $ 0 Credit + O 0 0 0 0 0 0 14 0 0 Issued credit memo to Arlington, Inc. for returned goods. 14 Cost of goods returned by Arlington Inc. 19 Cash 4 4 0 0 0 0 " 0 0 0 0 0 0 24 24 Received payment in full from Arlington, Inc. 24 24 Cash Paid Arlington, Inc. for returned goods. Cost of goods returned by Arlington, Inc. 44 th OOOOO 000 0 0 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions