Question

Please help me answer those three Questions.

Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $25,400 and credit terms of 3/10, 1/60. The merchandise had cost Mesa $17,323. Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system. 1. Prepare the entries that Santa Fe should record for the above transactions. View transaction list Х 1 Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $25,400 and credit terms of 3/10, n/60. 2 Santa Fe paid within the discount period. 2. Prepare the entries that Mesa should record for the above transactions. View transaction list Х 1 Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $25,400 and credit terms of 3/10, n/60. 2 The merchandise had cost Mesa $17,323. 3 Santa Fe paid within the discount period. 3. Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 8% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy. (Use 365 days a year. Do not round intermediate calculations.) Savings from discount taken Interest Expense on Funds Borrowed: Amount borrowed Number of days of interest Interest expense Buyer's net savings

Answer 1

1) Journal Entries - For Santa Fe Company
Date	Account Titles and Explanations	Debit	Credit
1)	Inventory	$25,400
	Accounts Payable - Mesa Company		$25,400
	(To record the purchase of inventory on account)
2)	Accounts Payable - Mesa Company	$25,400
	Purchase Discount ($25,400*3/100)		$762
	Cash ($25,400 - $762)		$24,638
	(To record the payment of accounts payable within discount period)
2) Journal Entries - For Mesa Company
Date	Account Titles and Explanations	Debit	Credit
1)	Accounts Receivable - Santa Fe Company	$25,400
	Sales Revenue		$25,400
	(To record the sales made on account)
	Cost of goods sold	$17,323
	Inventory		$17,323
	(To record the cost of goods sold)
2)	Cash ($25,400 - $762)	$24,638
	Sales Discount ($25,400*3/100)	$762
	Accounts Receivable - Santa Fe Company		$25,400
	(To record the collection of accounts receivable within discount period)

Note:

These are three different questions, and as HOMEWORKLIB guidelines, the first question should be answered but i have answered the first two questions, hence, please post the remaining questions separately.

Please do not give me the negative rating for not answering all the questions as i just followed the HOMEWORKLIB RULES and also it is taking more time to answer each question.