Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $18,600. The merchandise had cost Mesa $12,685. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. Complete this question by entering your answers in the tabs below: Required 1 Required 2 Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a Merchandise inventory 18,600 Required 1 Required 2 Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a Merchandise inventory Accounts payable 18,600 18,600 2 b Accounts payable Cash 18,600 18,042 558 3 Accounts payable 18,600 Cash 18,600 Required 1 Required 2 > Required 1 Required 2 Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a-1 Accounts receivable 18,600 Sales 18 600 2 a-2 12.685 Cost of goods sold Merchandise inventory 12 685