Refer to Exercise and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used by both the buyer and the seller.

In Exercise, Fortuna Company purchased merchandise for resale from Lemar Company with an invoice price of $30,000 and credit terms of 2/10, n/60. The merchandise had cost Lemar $20,100. Fortuna paid within the discount period. Assume that both buyer and seller use a perpetual inventory system.

1. Prepare entries that the buyer should record for

(a) The purchase

(b) The cash payment.

2. Prepare entries that the seller should record for

(a) The sale

(b) The cash collection.