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) 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) (To record payment within the discount period) Debit Credit