3. Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. a. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. b. Paid the amount owed on the invoice. c. Discovered that merchandise with an invoice amount of $9,000 purchased in (a) was defective and returned items, receiving credit.