Crane Corp. purchased merchandise during 2020 on credit for $805,000; terms 2/10, n/30. All of the gross liability except $120,000 was paid within the discount period. The remainder was paid within the 30-day term. At the end of the annual accounting period, December 31, 2020, 90% of the merchandise had been sold and 10% remained in inventory. The company uses a periodic system. (a) Your answer has been saved. See score details after the due date. Assuming that the net method is used for recording purchases, prepare the entries for the purchase and two subsequent payments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Purchases Accounts Payable (To record the purchase at net amount) Accounts Payable Debit 780850 664450 Credit 780850