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Purchase-Related Transactions Doumalize entries for the following related transactions of Lilly Heating \& Air Company: (If an amount box does not require an entry, leave it blank.) a. Purchased $46,000 of merchandise from Schell Co. on account, terms 1/10,n/30. Fendach rowak My Work a. A purchase increases inventory and the amount that is owed on account. b. Paid the amount owed on the invoice within the discount period. b. A payment of the involce within the discount period reduces Accounts Payable and Cash for the amount of the involce less the discount. c. Discovered that merchandise with an invoice amount of $9,200 purchased in (a) was defective and returned items, receiving credit. roetrace c. This transaction reduces inventory and the Accounts Payablei Since this retum was made after payment was made of the discounted price, the credit will be for the cost of b. A parment of the inveice watin the disceunt perisd cosuces Accounts Pavable and Cash for the aregunt of the imolce less the dsceunt. Dicovered that merchandse with an iwvice amount of 59,200 purchased in (a) was defective and retumed items, receiving creds. d. Furchased $7,500 of merchandre from 5ches Co, on accourt, terma n/30. towas, whe C. A purchase increases tiwertory and Acceunta twable. - Rectived a refund from Schell Co. for ceturn in (c) less the burchose in (c). row wy wat