On June 3, Bolton Company sold to Arquette Company merchandise having a sale price of $2,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Arquette 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 Arquette Company.
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Prepare journal entries on the Bolton Company books to record all the events noted above under each of the following bases. |
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(1) Sales and receivables are entered at gross selling price. |
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(2) Sales and receivables are entered at net of cash discounts. (b) Prepare the journal entry under basis 2, assuming that Arquette Company did not remit payment until July 29.
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