Merchandising Operations 2.
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 \$5, 600 under credit terms of 1/10, n/30, f08 destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $3,500 under credit terms of 2/10, n/60, F0B destination, Involce dated August 5. The merchandise had cost $2,600. August 8 Purchased merchandise fron Waters Corporation for 54, 099 under credit terms of 1/10, n/45, F08 shipping point, invoice dated August 8 . August 9 Paid $300 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 $500 and was sold for $1, 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 5400 off the 54,900 of goods purchased. Lowe's debited accounts payable for 5400 . August 14 At Aron's request, Lowe's paid \$150 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 \$3,e00 under credit terns of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,500. 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 recelvable for that amount. August 29 Recefived Tux's cash payment for the amount due fron the August 19 sale less the price allowance from August 22. August 30 Paid Aron Company the amount due from the August 1 purchase. Journal entry worksheet 234567816> Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10,n/30, FOB destination, invoice dated August 1. Notes Enter debits before credits. General| journal options - Accounts payable-Aron - Accounts payable-Baird - Accounts payable-Tux - Accounts payable-Waters - Accounts receivable-Aron - Accounts receivable-Baird - Accounts receivable-Tux - Accounts receivable-Waters - Accumulated depreciation - Building - Cash - Cost of goods sold - Delivery expense - Depreciation expense - Interest expense - Interest income - Interest payable - Interest receivable - Land - Merchandise inventory - Miscellaneous expenses - Purchases - Purchases discounts - Purchases returns and allowance - Sales - Sales discounts Journal entry worksheet 5816 Sold merchandise to Baird Corporation for $3,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Note: Enter debits before credits. Journal entry worksheet 5 Record cost of merchandise sold, $2,000. Note: Enter debits before credits. Journal entry worksheet
