Question

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 $24,000 of merchandise from Schell Co. on account, terms 2/10, n/30. 24,000 Inventory Accounts Payable-Schell Co. 24,000 b. Paid the amount owed on the invoice. Accounts Payable-Schell Co. 24,000 Cash 24,000 c. Discovered that merchandise with an invoice amount of $4,800 purchased in (a) was defective and returned items, receiving credit. Accounts Payable-Schell Co. Inventory d. Purchased $3,600 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.