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 $43,000 of merchandise from Schell Co. on account, terms 1/10, n/30.

b. Paid the amount owed on the invoice.

c. Discovered that merchandise with an invoice amount of $8,600 purchased in (a) was defective and returned items, receiving credit.

d. Purchased $7,100 of merchandise from Schell Co. on account, terms n/30.

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