Exercise 5-18A Recording sales, purchases, and discounts: buyer and seller- periodic LO P5 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 1/10, n/60 and an invoice price of $15,900. The merchandise had cost Mesa $10,844. Assume that both buyer and seller use a periodic inventory system and the gross method. 1. Prepare entries that the buyer should record for (a) the purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller should record for (a) the 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 should record for (a) the 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 the purchase. TB TF Qu. 05-07 Cost of goods sold represents the... Cost of goods sold represents the expense of buying and preparing merchandise for sale. True or False True False