Marcus Xavier noticed that many small rural towns did not have retail sporting goods outlets. To address this need, Marcus created Xavier Sporting Goods. The business experienced the following events during its first year of operation. 1. Acquired $58,000 cash from the issue of common stock. 2. On February 1, Year 1, Xavier Sporting Goods purchased merchandise inventory for $33,000 on account from True Sports Incorporated with terms 5/10, n/30 3. On February 8, Year 1, Xavier Sporting Goods settled the payable with True Sports Incorporated Record the recognition of the discount as 3a and the payment of the payable as 3b.