Homework Problems i Saved Prepare 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 $7,500 under credit terms of 1/10, n/38, FOB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. August 8 Purchased merchandise from Waters Corporation for $5,408 under credit terms of 1/10, n/45, FOB 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 from the August 5 sale that had cost Lowe's $400 and was sold for $600. 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 $400 off the $5,488 of goods purchased. Lowe's debited accounts payable for $400. August 14 At Aron's request, Lowe's paid $200 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 18. 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 $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400. 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 $500 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.

Prepare journal entres to record the following merchandising transactions of Lowe's, which uses the perpetual Inventory system and the gross method. ageust 1. 5. The nerchandise had cost $4, eee. dated August 8. restored to inventory. Aveust 12 After negotiations with waters Corperation conceraina problees with the purchases on sugust 3 , Lewe's recelved a price reduction fros waters of stee off the $5,400 of goods purchased. Leve's debited accounes payobte for 140 . August 14 At Aroh's request, Lowe's poid 1200 cash for freight chargen en the August 1 purchate, redocind the anount owed (acceunts payabia) to Aron. Augut is bald the amount due katera Cerporation for the August il parchase less the peice allowance fron Augut 12. Aurust 22 Twx requested a price reduction on the Augurt 10 sale because the serchanalse did not mett specifications, coue's gave a Auguve 29 Received fux's cash payment fon the anount due from the august 19 sais less the peice allovance fros August 22. Aegust jo Paid Anon Cospany the wount dee fron the August 1 purchase