On June 3, Sunland Company sold to Chester Company merchandise having a sale price of $5,200 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totalling $98, 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.
On June 3, Sunland Company sold to Chester Company merchandise having a sale price of $5,200 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totalling $98, 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare journal entries on the Sunland 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.

Transcribed Image Text:On June 3, Sunland Company sold to Chester Company merchandise having a sale price of $5,200 with terms of 4/10, n/60, f.o.b.
shipping point. An invoice totalling $98, 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.
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Transcribed Image Text:Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29. (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.)
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