On June
3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000
with terms of 2/10, n/60,
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, n/60, f.o.b. shipping point.
An invoice totalling $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.
(2) Sales and receivables are entered
at net cash discounts.
TUTORIAL PREVIEW
|
Jun 3
|
Accounts Receivable - Arnold Company
|
3,000
|
|
|
Sales
|
|
3,000
|
|
|
|
|
|
