Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Periodic System Fame Distributing Company had the following transactions with Arlington, Inc., during November: Nov. 10 Fame sold and shipped $8,000 worth of merchandise to Arlington Inc., terms 2/10, n/30. 12 Arlington, Inc. paid freight charges on the shipment from Fortune Company, $450. 14 Fame received $850 of merchandise returned by Arlington from the November 10 sale. 19 Fame received payment in full for the net amount due on the November 10 sale. 24 Arlington returned goods that had been billed originally at $700. Fortune issued a check for $686. Required Prepare the necessary journal entries (a) on the books of Fame Distributing Company and (b) on the books of Arlington, Inc. Assume that both companies use the periodic inventory system. a. FAME DISTRIBUTING COMPANY GENERAL JOURNAL Description Debit Credit Date Nov.. 10 Sold goods to Arlington, Inc. terms 2/10, n/30. Issued credit memo to Arlington for returned goods. 19 Cash Received payment in full from Arlington, Inc. 24 Cash Issued check to Arlington for returned goods. ARLINGTON, INC. GENERAL JOURNAL Description Debit Credit Date Nov. 10 0 $ Purchased goods from Fame Company terms 2/10, n/30. Paid freight charges on Fame shipment. Received credit memo for goods returned to Fame Company. Cash Paid Fame Company in full. 24 Cash Received check for goods returned to Fame Company