6 Problem 4-2A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 10 pont 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) allook Print Reference 1 Purchased merchandise from Aron Company for $7,5ee under credit terns of 1/10, 1/30, Fos destination, invoice dated August 1. Sold merchandise to Baird Corp. for 15,200 under credit terms of 3/10, 1/60, FOB destination, invoice dated August S. The merchandise had cost $4.000. # Purchased merchandise from waters Corporation for $5,400 under credit terns of 1/10, 1/45, FOB shipping point, invoice dated August 8. Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. 10 BIN returned merchandise froe the August 5 sale that had cost Love's $400 and was sold for 3600. The merchandise was restored to inventory. 12 After negotiations with waters Corporation concerning problems with the purchases on August 8, Lowe's received credit memorandum from waters granting a price reduction of $40 off the $5,400 of goods purchased. 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 16 Paid the amount due waters Corporation for the August purchase less the price allowance from August 12. 19 Sold merchandise te Tux Co. For H4, und dit teres of /10, FB shipping point, invoice dated August 19. The merchandise had cost $2,400 22 Tux requested price reduction on the August 19 sale because the merchandise did not meet specifications. Los sent tux Se credit memorandus toward the 54, invoice to resolve the issue 29 Received Tun's cash payment for the amount due for the August 19 sale less the price allowance from August 22 30 Paid Aron Company the amount due from the aut I purchase. Journal entry worksheet