1, 2 & b

AI N A D E G M 1 (Record Sales Gross and Net) On June 3, Arnold Company sold to Chester Company 2 merchandise having a sale price of 550000 with terms of 2/10, n/60,fo.b. 3 shipping point. An invoice totaling 7550, terms n/ao, was received by Arquette on 4 June 8 from John Booth Transport Service for the freight cost. On June 13, the company received a check for the balance due from Chester Company 5 6 (a) Prepare journal entries on the Amold Company books to record all the events 7 noted above under each of the following bases (1) Sales and receivables are entered at gross selling price. 8 9 10 11 12 13 14 15 16 17 (2) Sales and receivables are entered at net cash discounts 18 19 20 21 22 28 (b) Prepare the journal entry under basis 2, assuming that Chester Company did 29 not remit payment until July 29 30 31 32 33