Phoebe johnson is a senior hr executive at carmakers corp. she has been informed that the company needs to hire five line workers for their kingston plant. phoebe decides to go down to the plant to get a better idea of the work. she speaks to the line workers there and gets firsthand information about the important aspects of the job involved. phoebe is using the method to collect information.

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.