INTERMEDIATE ACCOUNTING 1 CHAPTER 8 PROBLEMS Problem 1 Otto Corp. purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of the liability was paid within the discount period except for $10,000. The $10,000 remaining balance was paid within the 30- day term. Instructions: Assuming that the net method is used for recording purchases, prepare th entries for the purchase and two subsequent payments