Question

Question 11 --/1 View Policies Current Attempt in Progress On June 3, Monty Company sold to Chester Company merchandise having a sale price of $2,100 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $96, 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 Monty 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. (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.)

Answer 1

a)

No.	Date	Account Titles and explanations	Debit	Credit
(1)	June 3	Account Receivable	$2,100
		Sales		$2,100
		( To record sales)
	June 12	Cash	$2,058
		Sales discount ($2,100 × 2%)	$42
		Account Receivable		$2,100
		(To record amount received)
(2)	June 3	Account Receivable	$2,058
		Sales ($2,100 ×98%)		$2,058
		(To record sales)
	June 12	Cash	$2,058
		Account Receivable		$2,058
		(To record amount received)

B)

Date	Account Titles and explanations	Debit	Credit
July 29	Cash	$2,100
	Account Receivable		$2,058
	Sales discount		$42
	(To record sales discount forfeited)