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 $7,000 under credit terns of 1/10, n/30, FoB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $4,900 under credit terns of 2/10, n/60, F08 destination, invoice dated August 5 . The merchandise had cost $3,000. August 8 Purchased oerchandise from Waters Corporation for $6,000 under credit terins of 1/18, n/45, F0B 5 hipping August 9 Paid $230 cash for shipping charges related to the August 5 sale to Baird Corporation. merchandise was restored to inventory. payable for $60e. owed (accounts payable)'s paid $230 cash for freight charges on the August 1 purchase, reducing the anount August 15 Received balance due from Baird Corporation for the August 5 sale less the return on August 10 . August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price atlowance from August 12 . August 19 Sold merchandise to Tux Company for $4,200 under credit terms of n/10, FoB shipping point, invoice dated August 22 Tux requested merchandise had cost $2,100. Lowe's gave a price reduction on the August 19 sale because the merchandise did not meet specifications. anount. 22. gust 30 Paid Aron Company the amount due from the August 1 purchase. Journal entry worksheet 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 $7,000 under credit terns of 1/10, n/30, FoB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $4,900 under credit terns of 2/10, n/60, F08 destination, invoice dated August 5 . The merchandise had cost $3,000. August 8 Purchased oerchandise from Waters Corporation for $6,000 under credit terins of 1/18, n/45, F0B 5 hipping August 9 Paid $230 cash for shipping charges related to the August 5 sale to Baird Corporation. merchandise was restored to inventory. payable for $60e. owed (accounts payable)'s paid $230 cash for freight charges on the August 1 purchase, reducing the anount August 15 Received balance due from Baird Corporation for the August 5 sale less the return on August 10 . August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price atlowance from August 12 . August 19 Sold merchandise to Tux Company for $4,200 under credit terms of n/10, FoB shipping point, invoice dated August 22 Tux requested merchandise had cost $2,100. Lowe's gave a price reduction on the August 19 sale because the merchandise did not meet specifications. anount. 22. gust 30 Paid Aron Company the amount due from the August 1 purchase. Journal entry worksheet
