On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $6,000 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $93, 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 Larkspur 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. No. Date Account Titles and Explanation Debit Credit
On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $6,000 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $93, 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 Larkspur 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. No. Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On June 3, Larkspur Company sold to Chester Company merchandise having a sale price of $6,000 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $93, 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
| (1) | Sales and receivables are entered at gross selling price. | |
| (2) | Sales and receivables are entered at net of cash discounts. |
|
No.
|
Date
|
Account Titles and Explanation
|
Debit
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Credit
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|---|
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