(Record Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price c 1220150 with terms of 3/10, n/60, f.o.b. shipping point. An invoice totaling 9850, 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 Compar (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.