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Purchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company: (If an amount box does not require an entry, leave

Purchase-Related Transactions

Journalize entries for the following related transactions of Lilly Heating & Air Company: (If an amount box does not require an entry, leave it blank.)

a. Purchased $44,000 of merchandise from Schell Co. on account, terms 2/10, n/30.

Inventory
Accounts Payable-Schell Co.

b. Paid the amount owed on the invoice within the discount period.

Accounts Payable-Schell Co.
Cash

c. Discovered that merchandise with an invoice amount of $8,800 purchased in (a) was defective and returned items, receiving credit.

Accounts Payable-Schell Co.
Inventory

d. Purchased $6,800 of merchandise from Schell Co. on account, terms n/30.

Inventory
Accounts Payable-Schell Co.

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

Cash
Accounts Payable-Schell Co.

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