6 Problem 4-2A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 5 poi Boo Print 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 Augustin Accounts Payable-Aron) aug. rased merchandise tron Aron Company for $7,000 under credit terns of 1/10, 1/30, PO destination, invoice dated August 5 Sold merchandise to Baird Corp. for $4,900 under redit terms of 2/10, 1/60, POB destination, Invoice dated August 5. The merchandise had cost $3,000. & Purchased merchandise from Waters Corporation for $6,000 under credit terms of 1/10, n/45, TOB shipping point invoice dated August Tala 270 cash for shipping charges related to the Austrate to Bird Corp. 10 taid returned merchandise from the August 5 sale that had coat Lowe's $500 and was sold for $1,000. The merchandise was restored to lovestory. 12 after negotiations with Waters Corporation concerning problems with the purchases on August, we received credit sends from waters granting price reduction of $600 off the $6.000 of goods purchased 14 At Aron's request. Les paid $220 cash for freight charges on the sugust purchase, reducing the amount owed to Aron. 15 Received balance de trobad corp. for the August 5 wale less the return on August 10. 18 raid the amount doe waters Corporation for the August purchase lose the price allowance from August 12. 19 told merchandise to tux Co. for 54,200 under credit turns of w10, FB shipping point, Invoice dated August 19 The marchandise had cont 52.100. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications Lowe went tex 6700 credit mererandun toward the 84.199 inice to resolve the issue. 29 Received Tux's cash payment for the mount due from the August 19 sale loss the price allowance from August 22. 30 Paid Aron Company the mount due from the August I purchase. View transaction list Journal entry worksheet 7 16 Record the merchandise, cost $500, that was restored to inventory 6 Love's sent Tux a credit memorandum toward the 4, 200 invoice to resolve the issue. 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. Answer is not complete. 5 points No Date General Journal Credit Debit 7,500 1 Aug 01 Merchandise inventory Accounts payable-Aron OO 7.500 2. Aug 05 5.200 Accounts receivable--Baird Sales OO 5.200 3 Aug 05 4,000 Cost of goods sold Merchandise inventory : 4,000 4 Aug 08 5.400 Merchandise inventory Accounts payable-Waters 5.400 Aug 09 125 Delivery expense Cash 125 6 Aug 10 400 Sales returns and allowances Accounts receivable Baird 400 7 Aug 10 No Transaction Recorded