Prepare journal entries to record the followin merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method.Aug $1$ Purchased merchandise fromAron Company for $$7,500$ under credit terms of $1/10,$ n$/30,$ FOB destination, invoice dated August $1.$Aug $5$ Sold merchandise to Baird Corp. for $$5,200$ under credit terms of $2/10,$ n$/60,$ FOB destination, invoice dated August $5.$ The merchandise had cost $$4,000.$Aug $8$ Purchased merchandise fromWaters Corporation for $$5,400$under credit terms of $1/10,$ n$/45,$ FOB shipping point, invoice datedAugust $8.$Aug $9$ Paid $$125$ cash for shipping charges related to the August $5$sale to Baird Corp. Aug $10$ Baird returned merchandise from the August $5$ sale that had cost Lowe's $$400$ and was sold for $$600.$ The merchandise was restored to inventory.Aug $12$ After negotiations with WatersCorporation concerning problems with the purchases on August $8,$ Lowe's received a price reduction from Waters of $$400$ off the $$5,400$ of goods purchased.Lowe's debited accounts payable for $$400.$Aug $14$ At Aron's request, Lowe's paid $$200$ cash for freight charges on the August $1$ purchase, reducing the amount owed $($accounts payable$)$ to Aron.Aug $15$ Received balance due from BairdCorp. for the August $5$ sale less the return on August $10.$Aug $18$ Paid the amount due WatersCorporation for the August $8$ purchase less the price allowance from August $12.$Aug $19$ Sold merchandise to Tux Co$.$ for $$4,800$ under credit terms of n$/10,$ FOB shipping point, invoice dated August $19.$ The merchandise had cost $$2,400.$Aug $22$ Tux requested a price reduction on the August $19$ sale because the merchandise did not meet specifications. Lowe's gave a price reduction $($allowance$)$ of $$500$ to Tux and credited Tux's accounts receivable for that amount.Aug $29$ Received Tux's cash payment for the amount due from the August $19$ sale less the price allowance from August $22.$Aug $30$ Paid Aron Company the amount due from the August $1$ purchase.