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Please find out the correct debt and credit for Aug.30 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual
Please find out the correct debt and credit for Aug.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 from Aron Company for 50,000 under credit tersis of 1/10,n/30, foe destination, Invoice dated August 1. August 5 Sold merchandise to Baind Corporation for 36,300 under credit terms of 2/10,n/60,108 destination, invoice dated August. 5. The oerchandise had cost \$4, eee. August 8 Purchesed merchandise from waters corporation for 58,000 under credit teras of 1/10,n/45, fo8 shipping point, involice doted August 8 . August 9 Paid $140 cash for shipping charges related to the August 5 sole to Baird Corporation: August 10 Baird returned merchandise from the August 5 sale that had cost tove's $500 and was sold for $1, e9e. The nerchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problens with the purchases on August 8, Lowe's recelved a price reduction from Waters of $800 off the 58,000 of good purchased. toue's debited occounts payable for ssee. August 14 At Aron's request, Lone's paid $260 cash for freight charges on the August 1 purchase, reducing the anount owed (accounts payable) to Aron. August 15 Received balance due from baird Corporation for the August 3 sale less the return on August 10. August is paid the anount due Waters Corporation for the August \& purchase less the prejce ollowance fron August 12. August 19 Sold nenchandise to Tux Company for $5,400 under credit terss of n/10, FOB shipping point, Involice dated August 19. The merchandise had cost $2,700. August 22 Tux requested a price reduction on the August 10 sale because the nerchandise did not meet specifications. Love's gave a price reduction (allowance) of $900 to Tux and credited Tux''s accounts receivable for that amount. August 29 Recelved Tux's cash paygent for the anount due froe the August 19 sale less the price allowance from August 22. Aogust 30 Paid Aron Company the amount due from the August 1 purchase Step by Step Solution
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