On June 3, Splish Company sold to Chester Company merchandise having a sale pric
ID: 2542756 • Letter: O
Question
On June 3, Splish Company sold to Chester Company merchandise having a sale price of $4,600 with terms of 2/10, 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.
On June 3, Splish Company sold to Chester Company merchandise having a sale price of $4,600 with terms of 2/10, 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
Date General Journal Debit Credit (1) June 3 Accounts Receivable-Chester $4,600 Sales $4,600 June 12 Cash $4,508 Sales Discounts($4,600 × 2%) $92 Accounts Receivable-Chester $4,600 (2) June 3 Accounts Receivable-Chester $4,508 Sales($4,600 × 98%) $4,508 June 12 Cash $4,508 Accounts Recievable-Chester $4,508
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