Purchase-related transactions Chart of Accounts Journal Instructions Journalize

Question

Purchase-related transactions Chart of Accounts Journal Instructions Journalize entries for the following related transactions of Lilly Heating &Air; Company, Refer to tne Chart of Accounts for exact wording of account otes A. Purchased $54,200 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice within the discount period. C. Discovered that $7,000 of the merchandise purchased in (A) was defective and returned items, receiving credit D. Purchased $6,000 of merchandise from Schell Co. on account, terms n/30. E. Recelved a refund from Schell Co. for return in (C) less the purchase in (O) Next

Explanation / Answer

A Inventory 54200              Accounts payable -schell co. 54200 B Accounts payable -schell co. 54200               Inventory 542               Cash 53658 C Accounts receivable 7000               Inventory 7000 D Inventory 6000              Accounts payable -schell co. 6000 E Cash 1000 Accounts payable -schell co. 6000               Accounts receivable 7000

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