The following documents describe two business transactions:

Required
1. Use the general journal to record these transactions and Eddie's Bicycle Shop's cash payment on March 21. Record the transactions first on the books of Eddie's Bicycle Shop and then on the books of Schwinn Company, which makes and sells bicycles. Both Eddie's Bicycle Shop and Schwinn Company use a perpetual inventory system. Schwinn Company's cost of the bicycles sold to Eddie's Bicycle Shop was $1,280. Schwinn Company's cost of the returned merchandise was $256. Round to the nearest dollar. Explanations are not required. Set up your answer in the following format:
Date Eddie's Bicycle Shop Journal Entries Schwinn Journal Entries
2. How would your answer be different if both of these companies used the periodic inventory system?

Transcribed Image Text:

Invoice Debit Memo Date Sold to: arch 14, 2017 Eddie's Bicycle Sh Date Issued to: Schwinn Compan March 20. 2017 Sold by: Terms 2/10, n/30 Items Purchased Bicycle Items Returneed Bi Quantity Price Total Quantity Price $152 112 Total $152 112 96 Total..._. . . $1,216 224 960 ...$2,400 $304 224 Reason: Damaged in shipment