Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. over the same time a measure of the overall price level increased from 150 to 156. the price of iron ore increased by a. more than inflation, so it became more scarce. b. less than inflation, so it became less scarce. c. less than inflation, so it became more scarce. d. more than inflation, so it became less scarce.

On june 3, teal company sold to chester company merchandise having a sale price of $2,600 with terms of 2/10, n/60, f.o.b. shipping point. an invoice totaling $91, 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 teal 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.