PART 2

Exercise 4-18A 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 3/10, n/60 and an invoice price of $28,100. The merchandise had cost Mesa $19,164. Assume that both buyer and seller use a periodic inventory system and the gross method. 1. Prepare entries that the buyer records 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 records for (a) the sale, (b) cash collection within the discount period, and (c) cash collection after the discount period. Required 2 Required 1 Prepare entries that the buyer records 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 > 2 3 1 Record the purchase Note: Enter debits before credits. Debit Credit Transaction General Journal . Clear entry Record entry View general journal Required 1 Required 2 Prepare entries that the buyer records 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 2 3 1 Record the cash payment within the discount period Note: Enter debits before credits General Journal Transaction Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Prepare entries that the buyer records 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 3 1 2 Record the cash payment after the discount period Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Required 1 Required 2 Prepare entries that the seller records for (a) the sale, (b) cash collection within the discount period, and (c) cash collection after the discount period View transaction list Journal entry worksheet 1 2 3 Record the sale. Note: Enter debits before credits. Credit Transaction General Journal Debit . Record entry Clear entry View general journal Required 1 Required 2 Prepare entries that the seller records for (a) the sale, (b) cash collection within the discount period, and (c) cash collection after the discount period View transaction list Journal entry worksheet