M (Record Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of 1220150 with terms of 3/10,n/60, 1.0.b. shipping point. An invoice totaling 9850 ,terms 1/30, was received by Arquette 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. (a) Prepare joumal entries on the Amold Company books to record all the events noted jabove under each of the following bases: 0 Sales and receivables are entered at gross seling price 8 0 1 12 13 14 15 16 17 18 (2) Sales and receivables are entered at net cash discounts 19 20 21 22 23 24 25 26 27 28 (6) Prepare the joumal entry under basis 2, assuming that Chester Company did not 29 romit payment until July 29 30 31 33 35 35 37 38 39 F G H Credits D E 1 Rodriguez Company reports the following financial information before adjustments, 2 3 Debits 4 Accounts Receivable $ 92,000 5 Allowance for Doubtful Accounts 6 Gross Sales (all on credit) 7 Sales Retums and Allowances $ 35,300 8 9 Instructions: 10 Prepare the joumal entry to record Bad Debt Expense assuming Rodriguez Company 11 estimates bad debts at 12 (a) 4% of net sales 13 (6) 8% of acounts receivable $ $ 3,660 167,500 15 a 16 17 18 19 20 21 Joumal entry 23 ) 24 26 27 Joumal entry 29 34 38