fPrepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and

the gross method.

August $1$ Purchased merchandise from Aron Company for $$9,000$ under credit terms of $\frac{1}{10},$ n$/30,$ FOB destination, invoice dated

August $1.$

August $5$ Sold merchandise to Baird Corporation for $$6,300$ under credit terms of $\frac{2}{10},$ n$/60,$ FOB destination, invoice dated August

The merchandise had cost $$4,000.$

August $8$ Purchased merchandise from Waters Corporation for $$8,000$ under credit terms of $\frac{1}{10},$ n$/45,$ FOB shipping point, invoice

dated August $8.$

August $9$ Paid $$210$ cash for shipping charges related to the August $5$ sale to Baird Corporation.

August $10$ 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.

August $12$ After negotiations with Waters Corporation concerning problems with the purchases on August $8,$ Lowe's received a price

reduction from Waters of $$800$ off the $$8,000$ of goods purchased. Lowe's debited accounts payable for $$800.$

August $14$ At Aron's request, Lowe's paid $$310$ cash for freight charges on the August $1$ purchase, reducing the amount owed $($accounts

payable$)$ to Aron.

August $15$ Received balance due from Baird Corporation for the August $5$ sale less the return on August $10.$

August $18$ Paid the amount due Waters Corporation for the August $8$ purchase less the price allowance from August $12.$

August $19$ Sold merchandise to Tux Company for $$5,400$ under credit terms of $\frac{n}{10},$ FOB shipping point, invoice dated August $19.$ The

merchandise had cost $$2,700.$

August $22$ Tux requested a price reduction on the August $19$ sale because the merchandise did not meet specifications. Lowe's gave a

price reduction $($allowance$)$ of $$900$ to Tux and credited Tux's accounts receivable for that amount.

August $29$ Received Tux's cash payment for the amount due from the August $19$ sale less the price allowance from August $22.$

August $30$ Paid Aron Company the amount due from the August $1$ purchase.