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Journalize entries for the following related transactions of Lilly Heating & Air Company: Purchased $34,000 of...

Journalize entries for the following related transactions of Lilly Heating & Air Company: Purchased $34,000 of merchandise from Schell Co. on account, terms 1/10, n/30. Paid the amount owed on the invoice within the discount period. Discovered that $6,800 before purchases discount of the merchandise was defective and returned items, receiving credit. Purchased $5,100 of merchandise from Schell Co. on account, terms n/30. Received a check for the balance owed from the return in (c), after deducting for the purchase in (d).

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Answer #1
Journal Entries:
S.no. Accounts title and explanations Debit $ Credit $
1 Merchandise Inventory Dr. 34000
    Accounts payable 34000
2 Accounts payable Dr. 34000
    Cash account (34000*99%) 33660
    Merchandise Inventory (34000*1%) 340
3 Accounts payable Dr. (6800*99%) 6,732
    Merchandise Inventory 6732
4 Merchandise Inventory Dr. 5100
     Accounts payable 5100
5 Cash account Dr. 1,632
    Accounts payable 1632
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