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i need help August 15 to august 30 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system
i need help August 15 to august 30
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 fron Aron Company for 57,000 under credit terms of 1/10,n/30, FoB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $4,900 under credit terms of 2/10,n/6e, FOB destination, invoice dated August 5 . The merchandise had cost $3,000. August 8 Purchased merchandise from waters Corporation for $6,000 under credit terms of 1/10,n/45, F0B 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 fron the August 5 sale that had cost Love's $500 and was sold for $1,000. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problens with the purchases on August 8 , Lowe's received a price reduction from Waters of $600 off the $6,000 of goods purchased. Lowe's debited accounts payable for $6e0. August 14 At Aron's request, Lowe's paid $370 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 anount due Waters Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Tux Company for $4,200 under credit terns of n/10, F0B shipping point, invoice dated August 19. The merchandise had cost $2,100. August 22 Tux requested a price reduction on the August 19 sale because the nerchandise did not neet specifications. Lowe's gave a price reduction (allowance) of $700 to Tux and credited Tux's accounts receivable for that amount. August 29 Received Tux's cash payment for the anount due from the August 19 sale less the price atlowance fron August 22. August 30 Paid Aron Company the anount due from the August 1 purchase Step by Step Solution
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