Using the information in Exercise 6, and assuming instead a periodic inventory system:
a. Prepare the entries that the purchaser should record for the purchase and payment.
b. Prepare the entries that the seller should record for the sale and collection.
In Exercise 6
On March 1, 2014, Sundown Company purchased merchandise for resale from Raintree with an invoice price of $10,000 and credit terms of 3/10, n/60. The merchandise had cost Raintree $8,000. Sundown paid on March 11. Assume that both the buyer and seller use perpetual inventory systems.