Help Problem 5-2A 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 Payable-Aron.) Aug. 1 Purchased merchandise from Aron Company for $7,000 under credit terma of 1/10, n/30, FOB destination, invoice gross method. (Hint t will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts dated August 1. 5 Sold merchandise to Baird Corp. for $4,900 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Watere Corporation for $6,000 under credit terma of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 Paid $120 cash for shipping charges related to the Auguet 5 sale to Baird Corp. 10 Baird returned merchandise from the August S sale that had cost towe'SS00 and vae sold tor 1,000, the merchandise was restored to inventory 12 After negotiations with Waters Corporation concerning problema with the purchases on August &, Lowe's received credit memorandum from Waters granting a price reduction of $600 off the $6,000 of goods purchased. 14 At Aron'a request, Lowe'a paid 8230 cash for freight charges on the Auguat 1 purehase, redueing the anount oved to Aron. 15 Received balance due from Baird Corp. for the August s sale less the return on Auguat 10. 18 Paid the amount due Waters Corporation for the Auguat & purchase less the price allovance from August 12 invoice dated August 19 19 sold merchandise to ux Co. tor $4,200 under eredit terma of n/1o, POB shipping point, The merchandise had cost $2,100. reduction on the Auguat 19 sale because the nerchandiae did not meet apeeifications. oale because the merchandiae did not moet apecificationa ice saue Lowe'a sent Tux a $700 credi t menorandum toward the $4,200 invoice to resolve the i 29 Received Tux'a cash payment for the amount due from the August 1 30 Paid Aron Com 9 sale leas the price allovance Erom Auguat 22 pany the anount due from the Auguat 1 purchase Vlew transaction list Saved Journal entry worksheet 16 12 3 4 5 6 7 8.... 16 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits. Date General Journal Debit Credit Aug 01 Record entry Clear entry View general jo Prey 1 of 2 Ne 4 5 6 7 Sold merchandise to Baird Corp. for $4,900 under credit terms of 2/10, n/60, FOB destination, Invoice dated August 5 Note: Enter debits before credits. Date General Journal Debit Credit Aug 05 Record entry Clear entry View general journal Prev 1012 ,E Next> Journal entry worksheet K1 234 5 6 7 8 16 Record cost of merchandise sold, $3,000. Note: Enter debits before credits. Date General Journal Debit Credit Aug 05 Record entry Clear entry View general jo Prev 1 of 2 N Saved Journal entry worksheet 2 6 16 Purchased merchandise from Waters Corporation for $6,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Note: Enter debits before credits. Date General Journal Debit Credit Aug 08 Record entry Clear entry View general journa 1012 Next Journal entry worksheet K 2 3 4 5 678. 16 Baird returned merchandise from the August 5 sale that was sold for $1,000. Note: Enter debits before credits. Date General Journal Debit Credit Aug 10 Record entry Clear entry Vlew general journal e1 of 2 Next > Journal entry worksheet K1 2 3 4 5 6 7 8 16 Record the merchandise, cost $500, that was restored to inventory. Note: Enter debits before credits. Date General Journal DebitCredit Aug 10 Record entry Clear entry View general journa 1 of 2 Next Journal entry worksheet 6 7 8 16 After negotiations with Waters Corporation concerning problems with the purchase granting a price reduction of $600 off the $6,000 of goods purchased. s on August 8, Lowe's received a credit memorandum from Waters Note: Enter debits before credits. Date General Journal Debit Credit Aug 12 Record entry Clear entry View general Journal 1 of 2 Next > Journal entry worksheet 7 9 10. 16 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Note: Enter debits before credits. Date General Journal Debit Credit Aug 15 Record entry Clear entry View general journa 1 of 2 Next > Journal entry worksheet 1. 6 7 8 9 10 1116 Paid the amount due Waters Corporation for the August 8 purchase less th price allowance from August 12. Note: Enter debits before credits. Date General Journal Debit Credi Aug 18 Record entry Clear entry Vlew goneral 1 of 2 Ne ournal entry worksheet K 1 7 8 9 10 11 12.. 16 Sold merchandise to Tux Co. for $4,200 under credit terms of n/10, FOB shipping point, invoice dated August 19. Note: Enter debits before credits. Date General Journal Debit Credit Aug 19 Record entry Clear entry View general jour 1 of 2 Next ournal entry worksheet K1 9 10 11 12 13 14 15 16 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Note: Enter debits before credits. Date General Journal Debit Credit Aug 29 Record entry Clear entry Vlew general journal 1 of 2 Next > Journal entry worksheet K1 ...9 10 11 12 13 14 1516 Paid Aron Company the amount due from the August 1 purchase. Note: Enter debits before credits. Date General Journal Debit Credit Aug 30 Record entry Clear entry View general journal Prey 1 of 2 Next