Purchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company: a. Purchased $28,000 of merchandise from Schell Co. on account, terms 2/10, n/30. b. Paid the amount owed on the invoice within the discount period. c. Discovered that $5,600 before purchases discount of the merchandise was defective and returned items, receiving credit. d. Purchased $4,300 of merchandise from Schell Co. on account, terms n/30. e. Received a check for the balance owed from the return in (c), after deducting for the purchase in (d). a. Inventory Accounts Payable-Schell Co. b. Accounts Payable-Schell Co. Cash c. Accounts Payable-Schell Co. Inventory d.