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.