Prepare the necessary journal entries (a) on the books of Ryan Distributing Company and (b) on the books of Arlington, Inc. Assume that both companies use the perpetual inventory system.

5Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System Ryan Distributing Company had the following transactions with Arlington, Inc., during the month of November: Nov. 10 Ryan sold and shipped $8,000 worth of merchandise ($4,500 cost) to Arlington, terms 1/10, n/30. 12 Arlington, Inc. paid freight charges on the shipment from Ryan Company, $450. 14 Ryan received $600 of merchandise returned by Arlington ($340 cost) from the November 10 sale. 19 Ryan 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 cost). Ryan issued a check for $396. Required Prepare the necessary journal entries (a) on the books of Ryan 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 DECKER COMPANY GENERAL JOURNAL Date Description Debit Credit Nov. 10 $ $ Sold goods to Arlington terms 1/10, n/30. 10 Cost of goods sold to Arlington. 14 Issued credit memo to Arlington for returned goods. 14 Cost of goods returned by Arlington. 19 Cash Received payment in full from Arlington. 24 Cash Paid Arlington for returned goods. 24 Cost of goods returned by Arlington.5Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System Ryan Distributing Company had the following transactions with Arlington, Inc., during the month of November: Nov. 10 Ryan sold and shipped $8,000 worth of merchandise ($4,500 cost) to Arlington, terms 1/10, n/30. 12 Arlington, Inc. paid freight charges on the shipment from Ryan Company, $450. 14 Ryan received $600 of merchandise returned by Arlington ($340 cost) from the November 10 sale. 19 Ryan 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 cost). Ryan issued a check for $396. Required Prepare the necessary journal entries (a) on the books of Ryan 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 ARLINGTON, INC. GENERAL JOURNAL Date Description Debit Credit Nov. 10 $ $ Purchase goods from Ryan Distributing Company terms 1/10, n/30. 12 Paid freight charges on Ryan Company shipment. 14 Received credit memo for goods returned to Ryan Company. 19 4 Cash Paid Ryan Company in full. 24 Received check for goods returned to Ryan Distributing Company. Check