Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of $\frac{2}{10},$ n$/60$ and an invoice price of $$20,900.$

The merchandise had cost Mesa $$14,254.$ Assume that both buyer and seller use a periodic inventory system and the gross method.

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.

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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.

Journal entry worksheet

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

from Mesa Wholesalers with credit terms of $\frac{2}{10},\frac{n}{60}$ and an invoice price of

$$20,900.$