On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $2,400 with terms of 3/10, n/60, f.o.b. shipping point. An invoice totaling $95, 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 the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.