On June 3, Swifty Company sold to Chester Company merchandisehaving 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 receivedby Chester on June 8 from John Booth Transport Service for thefreight cost. On June 12, the company received a check for thebalance due from Chester Company.
(a) Prepare journal entries on the Swifty Company books torecord all the events noted above under each of the followingbases.
(1) Sales and receivables are entered at gross sellingprice.
(2) Sales and receivables are entered at net of cashdiscounts.
b.
