Purchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. (If an amount box does not require an entry, leave it blank.) a. Purchased $48,000 of merchandise from Schell Co. on account, terms 1/10, n/30. 33 38 b. Paid the amount owed on the invoice. c. Discovered that merchandise with an invoice amount of $9,600 purchased in (a) was defective and returned items, receiving credit. d. Purchased $7,800 of merchandise from Schell Co. on account, terms n/30.