Purchase-Related Transactions Journalize 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 $26,000 of merchandise from Schell Co. on account, terms 2/10,n/30. Feedback Theck 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. Feedback Theck My Work 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 $5,200 purchased in (a) was defective and returned items, receiving credit. Feedback Check My Work d. Purchased $4,200 of merchandise from Schell Co. on account, terms n/30. d. Purchased $4,200 of merchandise from Schell Co. on account, terms n/30. Feedback Check My Work d. A purchase increases Inventory and Accounts Payable. e. Received a refund from Schell Co. for return in (c) less the purchase in (d). Feedback Check My Work e. Compare the amount owed in (d) with the amount credited to the buyer in (c). Cash refunded from the supplier will be for the difference between these two amounts