Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method. 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.
Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method. 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.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 5E
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![Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The
merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method.
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 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.
View transaction list
Journal entry worksheet
<
1
2
3
Transaction
a-1
Record Mesa Wholesaler's sale of merchandise "as is" (with no returns) to
Santa Fe Retailing with credit terms of 3/10, n/60 and an invoice price of
$24,000.
Note: Enter debits before credits.
4
General Journal
Debit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f720ab8-947a-40bc-9376-9f47ebcdb167%2F7a7bf83e-4182-45d8-9487-04f4d6ffd0f4%2F2uybp9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The
merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method.
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 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.
View transaction list
Journal entry worksheet
<
1
2
3
Transaction
a-1
Record Mesa Wholesaler's sale of merchandise "as is" (with no returns) to
Santa Fe Retailing with credit terms of 3/10, n/60 and an invoice price of
$24,000.
Note: Enter debits before credits.
4
General Journal
Debit
Credit
>
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