$($Record Sales Gross and Net$)$ On June $3,$ Arnold Company sold to Chester Company

merchandise having a sale price of $600000$ with terms of $\frac{2}{10},\frac{n}{60},$ f$.$o$.$b$.$

destination. An invoice totaling $,30000,$ terms $\frac{n}{30},$ was received by Arnold 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 Arnold 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 cash discounts.

$($b$)$ Prepare the journal entry under basis $2,$ assuming that Chester Company did not

remit payment until July $29.($Record Sales Gross and Net$)$ On June $3,$ Arnold Company sold to Chester Company

merchandise having a sale price of $600000$ with terms of $\frac{2}{10},\frac{n}{60},$ f$.$o$.$b$.$

destination. An invoice totaling $,30000,$ terms $\frac{n}{30},$ was received by Arnold 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 Arnold 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 cash discounts.

$($b$)$ Prepare the journal entry under basis $2,$ assuming that Chester Company did not

remit payment until July $29.$