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 $26,900. The merchandise had cost Mesa $18,346. 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 Journal entry worksheet 1 2 3 Record Santa Fe Retailing's purchase of merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $26,900. Note: Enter debits before credits. Transaction General Journal Debit Credit Record payment by Santa Fe within the discount period. Note: Enter debits before credits. Transaction b General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record payment by Santa Fe after the discount period. Note: Enter debits before credits. Transaction C General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and discount period. View transaction list Journal entry worksheet < 1 2 3 4 Record Mesa Wholesaler's sale of merchandise "as is" (with no returns) to Santa Fe Retailing with credit terms of 2/10, n/60 and an invoice price of $26,900. Note: Enter debits before credits, Transaction a-1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 2 3 Record the cost of the goods sold to Santa Fe, $18,346. Note: Enter debits before credits. Transaction a-2 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record Mesa's receipt of payment from Santa Fe within the discount period. Note: Enter debits before credits. Transaction b General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 Record Mesa's receipt of payment from Santa Fe after the discount period. Note: Enter debits before credits. Transaction C General Journal Debit Credit Record entry Clear entry View general journal