10 Aug 15 Cash Sales discounts Accounts receivable-Baird 11 Aug 18 Accounts payable-Waters Merchandise inventory Cash OOO 12 Aug 19 4,200 Accounts receivable--Tux Sales UD 4,200 13 Aug 19 2,100 Cost of goods sold Merchandise Inventory 00 2,100 14 Aug 22 700 Sales returns and allowances Accounts receivable-Tux 10 700 15 Aug 29 Cash 3,000 Accounts receivable-Tux 3.000 16 Aug 30 7.000 Accounts payable-Aron Merchandise inventory Cash @ @ 100 6.900 1 Aug 01 Merchandise Inventory Accounts payable-Aron 7,000 7,000 2 Aug 05 4,900 > Accounts receivable Baird Sales lo 4,900 3 Aug 05 3,000 > Cost of goods sold Merchandise Inventory ols 3,000 4 Aug 08 6,000 $ Merchandise Inventory Accounts payable-Waters Blo! 6,000 5 Aug 09 Merchandise inventory Cash 140 140 6 Aug 10 1.000 Sales returns and allowances Accounts receivable-Baird 1,000 7 Aug 10 500 Merchandise inventory Cost of goods sold 500 8 Aug 12 600 Accounts payable Waters Merchandise inventory O 600 9 Aug 14 Accounts payable Aron 230 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron. Aug. 1 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $4,900 under credit teras of 2/10, n/60, YOB destination, invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Waters Corporation for $6,000 under credit terms of 1/10, 1/45, POB shipping point, invoice dated August 8. 9 Paid $140 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Towes $500 and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from waters of $600 oft the $6,000 of goods purchased. Love's debited accounts payable for $600. 14 At Aron's request, Love's paid $230 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) to Aron. 15 Received balance due from Baird Corp. for the August 5 sale Less the return on August 10. 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold merchandise to Tux Co. for $4,200 under credit terms of n/10, TOB shipping point, Invoice dated August 19. The merchandise had cost $2,100. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications Lowe's gave a price reduction (allowance) of $700 to Tux, and credited Tux's accounts receivable for that 29 Received tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. 30 Paid Aron Company the amount due from the August 1 purchase. amount. No Date Aug 01 Answer is not complete. General Journal Merchandise inventory Accounts payable Aron Credit Debit 7,000 7.000 2 Aug 05 Accounts receivablo Baird $ 4.900