Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of $2/10,$ n$/60$ and an invoice price of $$27,500.$ The merchandise had cost Mesa $$18,755.$ 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.