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.)

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a. Purchased $29,000 of merchandise from Schell Co. on account, terms 2/10, n/30.

blank	Account	Debit	Credit
blank	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryInventory	Inventory	Inventory
	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryAccounts Payable-Schell Co.	Accounts Payable-Schell Co.	Accounts Payable-Schell Co.

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a. A purchase increases inventory and the amount that is owed on account.

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b. Paid the amount owed on the invoice within the discount period.

blank	Account	Debit	Credit
blank	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryAccounts Payable-Schell Co.	Accounts Payable-Schell Co.	Accounts Payable-Schell Co.
	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldMiscellaneous ExpenseCash	Cash	Cash
	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.Cost of Goods SoldMiscellaneous ExpenseInventoryInventory	Inventory	Inventory

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c. Discovered that merchandise with an invoice amount of $5,800 purchased in (a) was defective and returned items, receiving credit.

blank	Account	Debit	Credit
blank	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryAccounts Payable-Schell Co.	Accounts Payable-Schell Co.	Accounts Payable-Schell Co.
	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryInventory	Inventory	Inventory

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d. Purchased $4,500 of merchandise from Schell Co. on account, terms n/30.

blank	Account	Debit	Credit
blank	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryInventory	Inventory	Inventory
	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryAccounts Payable-Schell Co.	Accounts Payable-Schell Co.	Accounts Payable-Schell Co.

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e. Received a refund from Schell Co. for return in (c) less the purchase in (d).

blank	Account	Debit	Credit
blank	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryCash	Cash	Cash
	Accounts Payable-Schell Co.Accounts Receivable-Schell Co.CashCost of Goods SoldInventoryAccounts Payable-Schell Co.	Accounts Payable-Schell Co.	Accounts Payable-Schell Co.