On June $3,$ Waterway Company sold to Chester Company merchandise having a sale price of $$4,000$ with terms of $\frac{4}{10},\frac{n}{60},$ fo$.$ shipping point. An invoice totalling $$95,$ terms $\frac{n}{30},$ 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$)$

Prepare journal entries on the Waterway 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 accounc titles ond eniter of $($or the amounts. Credit account titles are dutomatically indented when the amount is entered. Do not indent manualigy List all debit entries be fore credit entries. Record journal entries in the order presented in the problemy

No$.$ Date

$(1)$

jurie $12$

$(2)$ thres

Jurie $12$

Account Titles and Explanation

Accounts pecelvale

Sales Revenue

Debit

$Ci$