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 $18,200. The merchandise had cost Mesa $12,412. Assume that both buyer and seller use a perpetual inventory system and the gross method.

Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period.

Journal entry worksheet

a1. Record 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 $18,200.

a2. Record the merchandise had cost Mesa $12,412.

b. Record cash recived within discount period

c. record cash recieved after discount period