DE5-7 Suppose a Lord & Taylor store purchases $140.000 of women's sportswear on account from Liz Claiborne, Inc. Credit terms are 2/10 net 30. Lord & Taylor pays electronically, and Liz Claiborne receives the money on the tenth day. Journalize Lord & Taylor's

(a) purchase and

(b) payment transactions. What was Lord & Taylor's net cost of this inventory? Note: Daily Exercise 5-8 covers this same situation for the seller.