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The D-Snap Corporation purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of...

The D-Snap Corporation purchased merchandise during 2017 on credit for $700,000; terms 2/10, n/30. All of the gross liability except $100,000 was paid within the discount period. The remainder was paid within the 30-day term. At the end of the annual accounting period, December 31, 2017, 90% of the merchandise had been sold and 10% remained in inventory. The company uses a periodic system

(a)   Assuming that the net method is used for recording purchases, prepare the entries for the purchase and two subsequent payments.

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