On June 3, Arnold Limited sold to Chester Arthur merchandise having a sale price of $3,000 with terms 3/10, n/60, f.o.b. shipping point. A $90 invoice, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. When it received the goods on June 5, Chester notified Arnold that $500 of the merchandise contained flaws that rendered it worthless; the same day, Arnold Limited issued a credit memo covering the worthless merchandise and asked that it be returned to them at their expense. The freight on the returned merchandise was $25, which Arnold paid on June 7. On June 12, the company received a cheque for the balance due from Chester Arthur. *(a) Your answer is partially correct. Try again. Prepare journal entries on Arnold Limited's books assuming that sales and receivables are entered at gross selling price. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Debit Credit Date Account Titles and Explanation June 3M Accounts Receivable Sales Revenue 7,000 5 13,000 Sales Revenue Accounts Receivable Pune 7 Freight-out Cash 2 June 12 Cash Sales Discounts TAccounts Receivable Attempts: 4 of 4 used *(b) Prepare journal entries on Arnold Limited's books assuming that sales and receivables are entered net of cash discounts. (Round answers to I decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit On June 3, Arnold Limited sold to Chester Arthur merchandise having a sale price of $3,000 with terms 3/10, n/60, f.o.b. shipping point. A $90 invoice, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. When it received the goods on June 5, Chester notified Arnold that $500 of the merchandise contained flaws that rendered it worthless; the same day, Arnold Limited issued a credit memo covering the worthless merchandise and asked that it be returned to them at their expense. The freight on the returned merchandise was $25, which Arnold paid on June 7. On June 12, the company received a cheque for the balance due from Chester Arthur. *(a) Your answer is partially correct. Try again. Prepare journal entries on Arnold Limited's books assuming that sales and receivables are entered at gross selling price. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Debit Credit Date Account Titles and Explanation June 3M Accounts Receivable Sales Revenue 7,000 5 13,000 Sales Revenue Accounts Receivable Pune 7 Freight-out Cash 2 June 12 Cash Sales Discounts TAccounts Receivable Attempts: 4 of 4 used *(b) Prepare journal entries on Arnold Limited's books assuming that sales and receivables are entered net of cash discounts. (Round answers to I decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit