You can play it two ways.
The more realistic, but less fluent, way to do this is the "then I said/then she said" method, because this is how people actually talk. The account should be to-the-point and light on details, especially descriptive details. This is better if the narrated portions are short.
The less realistic, but more fluent, way is to narrate it like the rest of the story, with full-length descriptions and such. This breaks reality a little, both because when you're speaking you don't get to polish your prose and because these stories are usually very to the point (you want to know how to stop the evil plan, not what the villain's outfit looks like), but it's easier and more compelling to read. You'll want to do this if the narrated portions are long.
P.S. Take the spaces out of the trope names to make Wiki Words
. And glad you're here!