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 $28,400. The merchandise had cost Mesa $19,369. 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.

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 Record the purchase. Note: Enter debits before credits. Transaction Debit a. Record entry General Journal Clear entry Credit View general journal 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 Record the cash payment within the discount period. Note: Enter debits before credits. Transaction General Journal b. Record entry Clear entry Debit Credit View general journal 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 Record the cash payment after the discount period. Note: Enter debits before credits. Transaction General Journal C. Record entry Clear entry Debit Credit 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 Record the cash collection within the discount period. Note: Enter debits before credits. General Journal Transaction b. Clear entry Record entry Debit Credit 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 Record the cash collection after the discount period. Note: Enter debits before credits. Transaction General Journal C. Record entry Clear entry Debit Credit View general journal