Purchase-Related Transactions

Journalize entries for the following related transactions of Lilly Heating & Air Company:

1. Purchased $40,000 of merchandise from Schell Co. on account, terms 1/10, n/30.
2. Paid the amount owed on the invoice within the discount period.
3. Discovered that $8,000 before purchases discount of the merchandise was defective and returned items, receiving credit.
4. Purchased $6,200 of merchandise from Schell Co. on account, terms n/30.
5. Received a check for the balance owed from the return in (c), after deducting for the purchase in (d).

a.	Inventory	fill in the blank 2
	Accounts Payable-Schell Co.		fill in the blank 4
b.	Accounts Payable-Schell Co.	fill in the blank 6
	Cash		fill in the blank 8
c.	Accounts Payable-Schell Co.	fill in the blank 10
	Inventory		fill in the blank 12
d.	Inventory	fill in the blank 14
	Accounts Payable-Schell Co.		fill in the blank 16
e.	Cash	fill in the blank 18
	Accounts Payable-Schell Co.		fill in the blank 20