Prepare journal entries to record the following merchandising transactions of Lowes, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts PayableAron.)

Aug.		1		Purchased merchandise from Aron 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 from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 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 Lowes $400 and was sold for $600. The merchandise was restored to inventory.
Aug.		12		After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowes received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased.
Aug.		14		At Arons request, Lowes paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron.
Aug.		15		Received balance due from Baird Corp. for the August 5 sale less the return on August 10.
Aug.		18		Paid the amount due Waters Corporation 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. Lowes sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue.
Aug.		29		Received Tuxs 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. Requirement--eral Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger Tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Income Statement tab - Prepare a multiple-step income statement. Impact on Income tab - Indicate the impact each transaction had on net income. General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income--For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the amount of income with the amount reported on the income statement.