Chapter 4 Accounting for Prepare journal entries to record the following merchandising transactions of Low petual inventory system and the gross method. (Hint: It will help to identify each wh for example, record the purchase on August I in Accounts Payable-Aron.) credit terms of 1/10 Aug. 1 Purchased merchandise from Aron Company for $7.500 under credit ten destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/6 invoice dated August 5. The merchandise had cost $4,000 8 Purchased merchandise from Waters Corporation for $5,400 under credit terns of Requir 1. C 2. c 3. Pr 4. P FOB shipping point, invoice dated August 8. 9 10 Baird returned merchandise from the August 5 sale that had cost Lowe00 12 After negotiations with Waters Corporation concerning problems with the purchses Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp S600. The merchandise was restored to inventory 8, Lowe's received the $5,400 of goods purchased. At Aron's request, Lowe's paid s200 cash for freight charges on the August I parde ing the amount owed to Aron. Received balance due from Baird Corp. for the August 5 sale less the return on Augs a credit memorandum from Waters granting a price reduction d 14 Use 15 Req 18 Paid the amount due Waters Corporation for the August 8 purchase less the pricl 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shiping 22 Tux requested a price reduction on the August 19 sale because the merchandise ul from August 12 A voice dated August 19. The merchandise had cost $2,400. specifications. Lowe's sent Tux a $500 credit memorandum toward the $4,80i solve the issue. 29 Received Tux's cash payment for the amount due from the August 19 sale lesthrpr 30 Paid Aron Company the amount due from the August 1 purchase. ance from August 22 TI Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, lo follows