dion.com%252Fmghmiddleware O pts) Seved Help Problem 4-2A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 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 $5,000 under credit terms of 1/10, n/30, po destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $2,000. 8 Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 Paid $180 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 $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 credit memorandum from Waters granting a price reduction of $400 off the $4,000 of goods purchased. 14 At Aron's request, Lowe's paid $240 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. 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 $3,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,500. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux a $500 credit memorandum toward the $3,000 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. View transaction list View journal entry worksheet No Date Credit 1 Debit 5.000 General Journal Merchandise inventory Accounts payable Aron Aug 01 5,000 H20 P1 Sarved Help 6 View transaction list View journal entry worksheet No Date Debit Credit 1 Aug 01 General Journal Merchandise inventory Accounts payable Aron 5,000 Ints 5,000 eBook 2 Aug 05 Accounts receivable Baird 3,500 Print 3 Aug 05 2,000 References Cost of goods sold Merchandise inventory 2,000 Aug 08 4000 Merchandise inventory Accounts payable Waters 4,000 on Aug 09 180 Delivery expense Cash 180 6 Aug 10 Sales returns and allowances 1,000 NN 7 Aug 10 500 Merchandise inventory Cost of goods sold 500 8 Aug 12 400 Accounts payable Waters Merchandise inventory 400 9 240 Aug 14 Accounts payable-Aron w 7 Aug 10 Merchandise inventory Cost of goods sold 500 500 8 Aug 12 Accounts payable-Waters Merchandise inventory 400 400 9 Aug 14 Accounts payable-Aron Cash 240 240 12 10 Aug 15 4,508 Cash Sales discounts Accounts receivable Baird 92 2,500 11 Aug 18 3,600 Accounts payable-Waters Merchandise inventory Cash 36 2,673 12 12 Aug 19 Accounts receivable Tux 3,000 Sales 3,000 13 Aug 19 1,500 Cost of goods sold Merchandise inventory 1,500 14 Aug 22 500 Sales returns and allowances Accounts receivable--Tux 500 Anno han
