Question

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.

Answer 1

To journalize the purchase of $44,000 of merchandise from Schell Co. on account, you would debit the Inventory account and credit the Accounts Payable - Schell Co. account.

Step-by-step explanation:

The journal entry for the purchase of $44,000 of merchandise from Schell Co. on account would be as follows:

1. Debit: Inventory - $44,000
2. Credit: Accounts Payable - Schell Co. - $44,000

The debit to the Inventory account increases the value of the company's inventory, while the credit to the Accounts Payable - Schell Co. account represents the amount owed to the supplier.