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On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $6,000 with terms of 4/10,n/60.f.0.b. shipping point. An invoice totaling
On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $6,000 with terms of 4/10,n/60.f.0.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. 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. (If no entry is required, select "No Entry for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit No. (1) Date June 3 1 Accounts Recelvable 6000 Sales Revenue 6000 June 12 5760 240 Sales Discounts Accounts Recevable 6000 (2) June 3 Accounts Receivable 5760 Sales Revenue 5760 June 127 Cash 5760 | | Accounts Receivable 5760 eTextbook and Media List of Accounts Attempts: unlimited 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 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 29
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