Purchase-Related Transactions Joumalize 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 531,000 of merchandise from Schall Co. on account, terms 1/10,n/30. reschach * Check My Wrrik a. A purchase increases inventory and the amount that is owed on account. b. Paid the amount oved on the invoice within the discount period. TCheck My Wrik b. A payment of the invoice within the discount period reduces Accounts Payable and Cash for the amount of the invoice less the discount. c. Discovered that merchandise with an invoice amount of 56,200 purchased in (a) was defective and returned items, receiving credit. d. Purchased $4,700 of merchandise from Schell Co. on account, terms n/30. * Cleck My Whik d. A purchase increases Inventory and Accounts Payable. e. Received a refund from Schell Co. for return in (c) less the purchase in (d). Fenchack TCheck Wy Work