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Posted by: Homeworkhelp
Price Quoted by Student: $3
Posted On: 2018-01-16 02:02:19
 
Question

E7-5 (Record Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totalling $90, 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.

 

Instructions

(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.

 

TUTORIAL PREVIEW

Jun 3

Accounts Receivable - Arnold Company

3,000

 

Sales

 

3,000

 

 

 

 



Solutions
(a) Prepare journal entries on the A
Price $3
Attachment 1: E7-5 Arnold Company.xls
Solution Posted By: Homeworkhelp    Posted on: 16-01-2018