PLEASE ORGANIZE

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. August 1 Purchased merchandise from Aron Company for $6,000 under eredit terms of 1/10,n/30, FoB destination, invoice dated August 1 . August 5 sold merchandise to Baird Corporation for $4,200 under credit terms of 2/10,n/60, FoB destination, invoice dated August 5. The merchandise had cost $3,000. August 8 Purchased merchandise from Waters Corporation for $5,000 under credit terms of 1/10, n/45, FoB shipping point, invoice dated August 8. August 9 Paid $120 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' $500 and was sold for $1, 000. The merchandise was restored to inventory. Augunt 12 After negotiations with Waters Corporation concerning problems with the purchasen on August 8, Lowe' a received a price reduction from Watera of $500 off the $5,000 of goods purchased. Love'a debited aceounta payable for $500. Auguat 14 At Aron's request, Love' paid $230 cash for freight charges on the August 1 purehase, reducing the amount owed (accounte payable) to Aron. Auguat 15 Received balance due from Baird Corporation for the August 5 bale less the return on August 10. August 18 paid the amount due Waters Corporation for the Auguat B purchase less the price allowance from August 12. August 19 sold merchandise to Tux Company for $3,600 under eredit terms of n/10, FOB shipping point, invoice dated August 19. The merehandise had cont $1,800. 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 $600 to Tux and eredited Tux's accounts receivable for that amount. Mugust 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. Received balance due from Baird Corporation for the August 5 sale less the return on August 10. Note: Enter debits before credits. Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. Note: Enter debits before credits. Sold merchandise to Tux Company for $3,600 under credit terms of n/10,FOB shipping point, invoice dated August 19. Note: Enter debits before credits