Otto Corp. purchased merchandise during 2020 on credit for $700,000; terms 2/10, n/30. All of the gross liability except $100,000 was paid within the discount period. The remainde was paid within the 30-day term. At the end of the annual accounting period, December 31 2020, 90% of the merchandise had been sold and 10% remained in inventory. The compan uses a periodic system. Assuming that the net method is used for recording purchases, prepare the journal entry f the two subsequent payments in good journal entry format (debits and credits clearly indicated):