On June 3, Whispering Company sold to Chester Company merchandise having a sale price of $5,700 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) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is partially correct.

Prepare journal entries on the Whispering 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.