On June 3, Nash Company sold to Chester Company merchandise having a sale price of $5,500 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $99, 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. (a) Your answer is partially correct. Prepare journal entries on the Nash 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 (1) June 3 Accounts Receivable June 12 Cash Sales Discounts Accounts Receivable (2) June 3 Accounts Receivable Sales Discounts Debit 550 535 53 (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.) No. Date Account Titles and Explanation (1) June 3 Accounts Receivable June 12 Cash Sales Discounts Accounts Receivable (2) June 3 Accounts Receivable Sales Discounts June 12 Cash eTextbook and Media List of Accounts Save for Later Accounts Receivable Debit Assistance Used 550 539 11 535 539 (b) 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 July 29 Debit List of Accounts Save for Later