(Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchan- dise having a sale price of $3,000 with terms of 2/10, n/60, f.o.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 r eceivables a r e ente r ed at g r oss selling price. (2) Sales and r eceivables a r e ente r ed at net of cash discounts. (b) P r epa r e the journal entry under basis 2, assuming that Chester Company did not r emit payment until July 29.
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