GL0402 (Static) - Based on Problem 4-2A Lowe's Company LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. (Hint: It will help to identify each recelvable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron.) August 1 Purchased merchandise from Aron Company for 57,500 under credit terns of 1/16, n/30, FoB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for 55,200 under credit terns of 2/10, n/60, F08 destination, Invoice dated August 5 . The merchandise had cost $4,000. August 8 Purchased merchandise fron Waters Corporation for $5,400 under credit terms of 1/10, n/45, F0 shipping point, invoice dated August 8 . August 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corporation August 10 Baird returned merchandise fron the August 5 sale that had cost Lowe's $408 and was sold for $608. 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 credit memorandum from Waters granting a price reduction of $400 of the $5,400 of goods purchased. August 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. August 15 Received balance due fron Baird Corporation for the August 5 sale less the return on August 10. August 18 Paid the anount due Waters Corporation for the August 8 purchase less the price allowance fron August 12. August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, F0B shipping point, invoice dated August 19. The merchandise had cost $2,460. August 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 $4,800 invoice to resolve the issue. August 29 Received Tux's cash payment for the anount due fron the August 19 sale less the price allowance from August August 36 Paid Aron Company the amount due fron the August 1 purchase. General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total General Journal tab - J General Journal herchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Schedule of Receivables tab - General Ledger sofware automates the balances for each of the customer's accounts. ichedule of Payables tab - General Ledger sofware automates the balances for each of the supplier's accounts. income Statement tab - Prepare a multiple-step income statement. mpact on Income tab - Indicate the impact each transaction had on net income. Journal entry worksheet 24567816 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10,n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits