Question

Check my work 4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 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. 2. 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. eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Ask 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. References View transaction list Journal entry worksheet < 1 2 3 4 > Record Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. Note: Enter debits before credits. Transaction General Journal Debit Credit a-1 Record entry Clear entry View general journal

Answer 1

if paid earlier discount of 3 % will be provided(discount period)

1
	Account	Debit $	Credit $
a	Merchandise Inventory	$              24,300
	Accounts payable		$              24,300
	( to record purchasing inventory)
b	Accounts payable	$              24,300
	Cash		$              23,571
	Merchandise Inventory Discount		$                    729
	( to record cash payment with discount period)
c	Accounts payable	$              24,300
	Cash		$              24,300
	( to record cash payment after discount peroid)
2	Account	Debit $	Credit $
a	Accounts Receivables	$              24,300
	Sales		$              24,300
	( to record sales)
	Cost of goods sold	$              16,573
	Merchandise inventory		$              16,573
	(to record cost of goods sold)
b	Cash	$              23,571
	Sales Discounts	$                    729
	Accounts Receivables		$              24,300
	(to record cash receipt before discount period)
c	Cash	$              24,300
	Accounts Receivables		$              24,300
	(to record cash receipt after discount period)