Check Prepare joumal 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 ) 1 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FO destination, invoice dated August 1. s Sold merchandise to Baird Corp. for $4,900 under credit teres of 2/10, n/60, FOB destination, invoice dated August 5. The nerchandise had cost $3,000. 8 Purchased merchandise from Waters Corporation for $6,000 under credit teras of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 Paid $128 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 Lowe's $508 and was sold for $1.800, The merchandise was restored to inventory. 12 After negotiations with Haters Corporation concerning probloss with the purchaxes on August 8, Loue's received a credit nonorandun from Waters granting a price reduction of $6ea off the so, 000 of goods purchased. 14 At Aron's request, Lowe's paid $120 cash for freight charges an the August 1 purchase, reducing the anount owed to Aran. 15 Received balonce due fron Baird Conp., for the August 5 sale less the return an Augest 18. 18 Paid the anount due Maters Corporatian for the August 8 purchase lesx the price allowance fros ugust 12. 19 Sold nerchandise to Tux Co. for $4, 280 undee ceedit tersw of n/10, FoR shipping peint, Invode dated August 19, The erchandise had cost $2,100 Aug. Check -. 5 Sold merchandise to Baird Corp. for $4,980 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The morchandise had cost $3,000. 8 Purchased nerchandise from Waters Corporation for $6,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 Paid $120 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned nerchandi se from the August 5 sale that had cost Lowe's $500 and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problens with the purchases on August 8, Lowe's received a credit nenorandum from Waters granting a price reduction of $600 off the $6,000 of goods purchased. 14 At Aron's request, Lowe's paid $12e cash for freight charges on the August 1 purchase, reducing the anount owed to Aron. 15 Received balance due from Baird Corp, for the August 5 sale less the return on August 10. 18 Paid the anount due Waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold nerchandise to Tux Co. for $4, 288 under credit terns of n/10, FOB shipping point, invoice dated August 19. The nerchandise had cost $2,180. 22 Tux requested a price reduction on the August 19 sale because the nerchandise did not seet specifications. Loue's sent Tux a $700 credit senorandum touard the $4, 200 invoice to resolve the issue. 29 Received Tux's cash paynent for the anount due from the August 19 sale less the price allowance fron August 22. 3e Paid Aron Company the anount due from the August 1 purchase. 1 of 1 Prev Noxt