Prepare journal entries to record the following merchandising transactions of Lowe's, 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 Payable. Aron) Aug 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1 Aug. 5 Sold merchandise to Bird Corp. for $5,200 under credit terms of 2/10, 1/60, FOB destination, Invoice dated August 5. The merchandise had cost 34,000 Aug: Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, 1/45, FOB shipping point, invoice dated August 8 Aug. Pald $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 1600. The merchandise was restored to inventory Aug. 12 After negotiations with waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit memorandum from Maters granting a price reduction of $400 off the 55,400 of goods purchased. Aug. 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the anount owed to Aron Aug. 15 Received balance due from faird Corp. for the August 5 sale less the return on August 10. Aug 15 Paid the amount due laters Corporation for the August 8 purchase less the price allowance from August 12. Aug 19 Sold merchandise to Tux Co. for $4,000 under credit terns of 1/10, FOB shipping point, invoice dated August 19. The merchandise had cost 52.400. Aug. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux . 5500 credit scorandum toward the $4,600 Invoice to resolve the issue. Aug. 23 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. Income Statement Impact on Income Schedule of Receivables General Ledger Trial Balance Schedule of Payables General Journal Requirement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries View transaction list Journal entry worksheet 5 16 8 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, 1/30, FOB destination, Invoice dated August 1. Note: Enter debit before credits Credit Date Aug 01 Account Title Purchases discounts Accounts payable - Aron Debit 8 000 8000 Record entry Clear entry View general journal General General Schedule of Schedule of Income Impact on Requirement Trial Balance Journal Ledger Receivables Payables Statement Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and payable will be updated based on your entries. View transaction list Journal entry worksheet 10 11 12 13 14 15 16 > Paid Aron Company the amount due from the August I purchase Note: Inter debits before credite Account Title Debit Credit Date Aug 30 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Prepare a multiple step income statement. OOK Lowe's Company Income Statement For the Month Ended August 31, 2019 tonces 0 0 0 0 0 Operating expenses Net Income
