Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of $\frac{1}{10},\frac{n}{60}$ and an invoice price of $$20,500.$ The

merchandise had cost Mesa $$13,981.$ Assume that both buyer and seller use a periodic inventory system and the gross method.

Required:

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.

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.