On June 3, Arnold Company sold to Chester Company merchandise having a sale pric
ID: 2427181 • Letter: O
Question
On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $4,500 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.
No.
Date
Account Titles and Explanation
Debit
Credit
June 3
June 12
June 3
June 12
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $4,500 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.
Explanation / Answer
Answer:
A.
Jun 3. Account Receivable - Arnold Company......................................Dr. $ 4,500
Sales...........................................................................Cr $ 4,500
Jun 12 Cash ...................................................................................Dr. $ 4,320
Sales Discounts ( $ 4,500 * 4% ) .........................................Dr.$ 180
Account Receivable- Arnold company......................$ 4,500
June 3. Account Receivable- Arnold company....................................Dr. $ 4,320
Sales ( 4,500 * 96% ) ......................................$ 4,320
Jun12 Cash .................................................................................Dr. $ 4,320
Account Receivable- Arnold company............................... $ 4,320
B).
Cash ....................................................................Dr. $ 4,500
Account Receivable................................................................$ 4,320
Sales Discount Forfeited....( 4,500 * 4 % ) ..............................$ 180
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