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On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $5,600 with terms of 2/10, n/60, f.o.b. shipping point. An
On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $5,600 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $93, 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 Larkspur 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. |
sorry the first picture is after the second. They are reversed
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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit July 29 eTextbook and Media List of Accounts No. Date Account Titles and Explanation (1) June 12 (2) eTextbook and MediaStep by Step Solution
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