AC 302 CHAPTER 7 QUESTION 5

AC 302 CHAPTER 7 QUESTION 5
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E7-5 (Record Sales Gross and Net) 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.						
						
						
Instructions:						
"(a) Prepare journal entries on the Bolton 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."						
						
						
						
Jun 3	Account Title					
	Account Title					
	Account Title					
						
Jun 12	Account Title					
	Account Title					
	Account Title					
						
(2) Sales and receivables are entered at net cash discounts.						
						
Jun 3	Account Title					
	Account Title					
	Account Title					
						
Jun 12	Account Title					
	Account Title					
	Account Title					
						
"(b) Prepare the journal entry under basis 2, assuming that Arquette Company did not remit payment
     until July 29."						
						
						
Jul 29	Account Title					
	Account Title					
	Account Title