| Exercise 7-05 On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $3,600 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $91, 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. | | | |
| Prepare journal entries on the Waterway 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 of cash discounts. | (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) | No. | Date | Account Titles and Explanation | Debit | Credit | | (1) | choose a transaction date June 3June 12 | enter an account title | enter a debit amount | enter a credit amount | | | | enter an account title | enter a debit amount | enter a credit amount | | | June 12 | enter an account title | enter a debit amount | enter a credit amount | | | | enter an account title | enter a debit amount | enter a credit amount | | | | enter an account title | enter a debit amount | enter a credit amount | | (2) | choose a transaction date June 3June 12 | enter an account title | enter a debit amount | enter a credit amount | | | | enter an account title | enter a debit amount | enter a credit amount | | | choose a transaction date June 3June 12 | enter an account title | enter a debit amount | enter a credit amount | | | | enter an account title | enter a debit amount | enter a credit amount | | | | |
| Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) | Date | Account Titles and Explanation | Debit | Credit | | July 29 | enter an account title | enter a debit amount | enter a credit amount | | | enter an account title | enter a debit amount | enter a credit amount | | | enter an account title | enter a debit amount | enter a credit amount | | | | |
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On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $3,600 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $91, 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. Prepare journal entries on the Waterway 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 of cash discounts. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (1) June 3 Accounts Receivable 3600 Sales Revenue 3600 June 12 Cash Sales Discounts Accounts Receivable (2) June 3 June 12 O ooooo Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 29
