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On June 3, Concord Company sold to Chester Company merchandise having a sale price of $3,300 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $94, 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.           Prepare journal entries on the Concord 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.

On June 3, Concord Company sold to Chester Company merchandise having a sale price of $3,300 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $94, 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.           Prepare journal entries on the Concord 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 3, Concord Company sold to Chester Company merchandise having a sale price of $3,300 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $94, 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.

 
 
 
 
 
Prepare journal entries on the Concord 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.
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