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 $12,000 worth of merchandise ($10,200 cost) to Arlington, terms 2/10, n/30. 12 Arlington, Inc. paid freight charges on the shipment from Riggs Company, $320. 14 Riggs received $600 of merchandise returned by Arlington ($420 cost) from the November 10 sale. 19 Riggs received payment in full for the net amount due on the November 10 sale. Arlington, Inc. returned goods that had originally been billed at $600 ($410 cost). Riggs issued a check for 24 $588. 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. Date RIGGS DISTRIBUTING COMPANY GENERAL JOURNAL Description Debit A $ Credit Nov. 10 $ Sold goods to Arlington, Inc. terms 2/10, n/30. 10 - Cost of goods sold to Arlington, Inc. 14 Issued credit memo to Arlington, Inc. for returned goods. 14 Cost of goods returned by Arlington Inc. 19 Cash A Received payment in full from Arlington, Inc. 24 - Cash Paid Arlington, Inc. for returned goods. 24 - Cost of goods returned by Arlington, Inc. ARLINGTON, INC. GENERAL JOURNAL Description Date Debit Credit Nov. 10 ta tA A Purchase goods from Riggs Distributing Company terms 2/10, n/30. 12 Paid freight charges on Riggs Company shipment. 14 Received credit memo for goods returned to Riggs Company. 19 Cash Paid Riggs Company in full. 24 A Received check for goods returned to Riggs Distributing Company