The following documents describe two business transactions.

Requirements 

Use the general journal to record these transactions and Jerry Stevens' cash payment on December 19. Record the transactions first on the books of Jerry Stevens, Bridgestone and, second, on the books of Bridgestone Tire Company, which manufactures auto tires. Both Stevens and Bridgestone use a perpetual inventory system as illustrated in Chapter 5. 

Bridgestone's cost of the tires sold to Stevens was \(\$ 690\). Bridgestone's cost of the returned merchandise was \(\$ 140\).

Round amounts to the nearest dollar. Explanations are not required. Set up your answer in the following format. 

Transcribed Image Text:

Date: Sold to: Invoice Dec. 12, 2007 Jerry Stevens Bridgestone Sold by: Bridgestone Tire Co. Terms: 2/10 n/30 Date: Debit Memo Dec. 18, 2007 Sent to: Bridgestone Tire Co. Sent by: Jerry Stevens Bridgestone Items Purchased Tires Items Returned Tires Quantity Price Total Quantity Price Total 8 $95 $ 760 2 $95 $190 4 70 280 1 70 70 5 60 300 Total $260 Total $1,340 Reason: Damaged in shipment