Exercise 4-9 (Algo) Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $26,200. The merchandise had cost Mesa $17,868. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 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. 1 No Transaction General Journal a-1 Accounts receivable Sales 2 a-2 Cost of goods sold Merchandise inventory 3 b Cash Sales discounts 4 Cash Accounts receivable < Required 1 Required 2 > Debit Credit 26,200 26,200 17,868 17,868 Exercise 4-9 (Algo) Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $26,200. The merchandise had cost Mesa $17,868. 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. Answer is not complete. 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. No 1 Transaction a 2 b 3 General Journal Merchandise inventory Accounts payable Accounts payable Merchandise inventory Cash Accounts payable Cash < Required 1 Required 2 > Debit Credit 26,200 26,200 26,200 5,240 20,960 26,200 26,200