g What must occur for leisure to violate the law of supply? leisure must be normal and the income effect must be larger than the substitution effect leisure must be normal and the substitution effect must be larger than the income effect leisure must be inferior and the income effect must be larger than the substitution effect leisure must be inferior and the substitution effect must be larger than the income effect

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.