Two methods are under consideration for producing the case for a portable hazardous material photoionization monitor. a plastic case will require an initial investment of $75,000 and will have an annual operating cost of $27,000 with no salvage after 2 years. an aluminum case will require an investment of $125,000 and will have annual costs of $12,000. some of the equipment can be sold for $30,000 after its 3-year life. at an interest rate of 10% per year, which case should be used on the basis of a present worth analysis?

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.