(Record Sales Gross and Net) On June 3, Arnold Company sold to Chester Company 360000 with terms of 2/10, n/60, f.o.b. merchandise having a sale price of destination. An invoice totaling 12000, terms n/30, was received by Arquette 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. 12345 A 6 (a) Prepare journal entries on the Arnold Company books to record all 7 the events noted above under each of the following bases: 8 (1) Sales and receivables are entered at gross selling price. 9 10 June 3 11 Accounts Accounts Receivable Debit Credit 360,000 12 Sales 360,000 13 14 Jun 8 Accounts Debit Credit 15 Freight Expenses 12,000 16 Cash 12,000 17 18 Jun 12 Accounts Debit Credit 19 20 21 22 (2) Sales and receivables are entered at net cash discounts. 23 24 Jun 3 25 26 27 28 29 30 31 33 Accounts Accounts Receivable Sales Debit Credit