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On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $4,000 with terms of 4/10, n/60, f.o. shipping point. An invoice totalling $95, 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. (a) Prepare journal entries on the Waterway 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. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. No. Date Account Titles and Explanation (1) June June 3 Accounts Receivable June 12 (2) June 3 June 12 Sales Revenue Debit Ci

On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $4,000 with terms of 4/10, n/60, f.o. shipping point. An invoice totalling $95, 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. (a) Prepare journal entries on the Waterway 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. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. No. Date Account Titles and Explanation (1) June June 3 Accounts Receivable June 12 (2) June 3 June 12 Sales Revenue Debit Ci

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, Waterway Company sold to Chester Company merchandise having a sale price of $4,000 with terms of 4/10, n/60, f.o. shipping point. An invoice totalling $95, 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. (a) Prepare journal entries on the Waterway 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. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. No. Date Account Titles and Explanation (1) June June 3 Accounts Receivable June 12 (2) June 3 June 12 Sales Revenue Debit Ci
Transcribed Image Text:On June 3, Waterway Company sold to Chester Company merchandise having a sale price of $4,000 with terms of 4/10, n/60, f.o. shipping point. An invoice totalling $95, 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. (a) Prepare journal entries on the Waterway 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. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. No. Date Account Titles and Explanation (1) June June 3 Accounts Receivable June 12 (2) June 3 June 12 Sales Revenue Debit Ci
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