Help s Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion 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 eredit terms of 1/10, 1/30, POR 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 oved 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. Answer is not complete. No Date General Journal Debit Credit Answer is not compree. No General Journal Credit Dobit 5,000 1 Aug 01 Merchandise inventory Accounts payable Aron 5,000 3,500 2 Accounts receivable Baird Aug 05 3 2,000 Aug 05 Cost of goods sold Merchandise inventory > 2,000 4 Aug 08 4,000 Merchandise inventory Accounts payable Waters ol 4,000 180 5 Aug 09 Delivery expense Cash 180 > 6 1,000 Sales returns and allowances Aug 10 7 500 Aug 10 Merchandise inventory Cost of goods sold olo 500 B 400 Aug 12 Accounts payable-Waters Merchandise inventory Clo 400 Aug 14 Accounts payable Aron 240 Cash 240 10 Aug 15 Cash Sales discounts Accounts receivable Baird OOO 4,508 X 92 2,500 11 Aug 18 3,600 Accounts payable-Waters Merchandise inventory Cash 36 2,673 12 Aug 19 Accounts receivable Tux 3,000 O 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 15 Aug 29 Cash 2,000 Accounts receivable--Tux 2,000 X 16 Aug 30 5,000 Accounts payable Aron Cash 5,000