Journal Jounalize entries for the following related transactions of Lilly Heatin

Question

Journal Jounalize entries for the following related transactions of Lilly Heating & Air Company Refer to the Chart of Accounts for exact wording of account titles A Purchased $36,000 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 $9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit D. Purchased $5,000 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)

Explanation / Answer

Answer

Journal Entries:

Date Particulars Dr Cr A Inventory (36000-1%) 35640 Accounts payable 35640 B Accounts payable 35640 Cash 35640 C Accounts payable(9000-1%) 8910 Inventory 8910 D Inventory 5000 Accounts payable 5000 E Cash (8910-5000) 3910 Accounts payable 3910

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