Purchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company: a. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, 1/30. b. Pald the amount owed on the involce within the discount period. c. Discovered that $7,200 before purchases discount of the merchandise was defective and returned items, receiving credit. d. Purchased $5,600 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. 35,640 Inventory Accounts Payable-Schell Co. 35,640 b. Accounts Payable-Schell Co. 11,880 X Cash 11,880 x C 35,640 X Accounts Payable-Schell Co. Inventory Inventory Accounts Payable-Schell Co. 35,640 X 35,640 X Cash 35,640 X Accounts Payable-Schell Co. 35,640 X