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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.

User Djzin
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1 Answer

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Final answer:

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.

User Don Gossett
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