On June 3 , Waterway Company sold to Chester Company merchandise having a sale price of $4,000 with terms of 4/10,n/60, fo.b. shipping point. An invoice totalling $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. (a) Your answer is correct. 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. 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manuolly. List all debit entries before credit entries.)