Answer
(1) June 3 Accounts Receivable (Arquette)...................... 2,000
…………………….Sales............................................................................ 2,000
June 12 Cash......................................................................... 1,960
…………..……Sales Discounts ………………................................... 40*
………………………Accounts Receivable—Chester............................ 2,000
(2) June 3 Accounts Receivable—Chester............................. 1,960
……………….... Sales ………………............................................................... 1,960**
June 12 Cash............................................................................. 1,600
………………….Accounts Receivable—Chester..................................... 1,960
Work Step by Step
2,000 X 2%= 40*
2,000 X 98%= 1960**
