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Name: Date: Instructor Course: Intermediate Accounting, 15" Edition by Kleso, Weygandt, and Warfield E7-5 (Record...

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Accounting

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Name: Date: Instructor Course: Intermediate Accounting, 15" Edition by Kleso, Weygandt, and Warfield E7-5 (Record Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, 1/60,fo.b. shipping point. An invoice totaling $90 terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Instructions: (a) Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases: (1) Sales and receivables are entered at gross selling price. Jun 3 Account Title Account Title Account Title Jun 12 Account Title Account Title Account Title (2) Sales and receivables are entered at net cash discounts. Jun 3 Account Title Account Title Account Title 0 1 Jun 12 Account Title Account Title Account Title (b) Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment untilJuly 29. 55 6 87 88 39 40 41 Jul 29 Account Title Account Title Account Title 42 43

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