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Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. (If an amount box does not require an entry, leave it blank.) a. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30.

Respuesta :

Explanation:

The journal entry is as follows

Inventory Dr $35,640

      To Account payable $35,640

(Being the purchase of merchandise on account is recorded)

The computation is shown below:

= Purchase value of merchandise - purchase value of merchandise × discount rate

= $36,000 - $36,000 × 1%

= $36,000 - $360

= $35,640