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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
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) Prepare journal entries on the Waterway Compary books to record all the events noted above under each of the following bases. (1) Sales and recelvables 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 occount tilles and enter Ofor the amounts. Credit account titles are outomatically indented when the omount is entered. Do not indent manually. List all debit entries before credit entries. Recard joumal entries in the order presented in the problem.)
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