E$1($Record Sales Gross and Net$)$

On June $1,$ Carpio Company sold to Pilco Inc. merchandise having a sale price of $$2,500$ with terms of $2/10,$ n$/60,$ f$.$o$.$b$.$ shipping point. An invoice totaling $$65,$ terms n$/30,$ was received by Pilco on June $8$ from the Martin Transport Service for the freight cost. On June $10,$ Carpio company received a check for the balance due from Pilco.

Instructions

$($a$)$ Prepare journal entries on the Carpio Company books to record all the events noted above under each of the following assumptions:

$(1)$ Sales and receivables are entered at gross selling price $($gross method$).$

$(2)$ Sales and receivables are entered at net of cash discounts $($net method$).$

$($b$)$ Write the necessary journal entries in Carpio$$s books on July $29,$ If Pilco remitted payment on July $29$ instead of June $12$ and Carpio had chosen to use the net method.