Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of $2/10,$ n$/60$ and an invoice price of $$27,000.$ The

merchandise had cost Mesa $$18,414.$ Assume that both buyer and seller use a perpetual inventory system and the gross method.

Prepare entries that the buyer records for the $($a$)$ purchase, $($b$)$ cash payment within the discount period, and $($c$)$ cash payment

after the discount period.

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.

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare entries that the buyer records for the $($a$)$ purchase, $($b$)$ cash payment within the discount period, and $($c$)$ cash payment after the

discount period.

Journal entry worksheet$-$

$1.$ Record Santa Fe Retailing's purchase of merchandise $"$as is$"($with no returns$)$

from Mesa Wholesalers with credit terms of $2/10,$ n$/60$ and an invoice price of

$$27,000.$

Note: Enter debits before credits.

$2.$Record payment by Santa Fe within the discount period.

$3.$Record payment by Santa Fe after the discount period.