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.) 1 Purchased merchandise from Aron Company for $10,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August Aug. 1. 5 Sold merchandise to Baird Corp. for $7,000 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $5, 000. 8 Purchased merchandise from Waters Corporation for $9,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. for shipping charge related to the 5 sale to Baird Corp 10 Baird cetuened merchandise from the A. t s sale that had cost Lowe's $50e and was sold for $1,000. The merchandise was August restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit memorandum from Waters granting a price reduction of $900 off the $9,000 of goods purchased. 14 At Aron's request, Lowe's paid $130 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. 15 Received balance due from Baird Corp. for the August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12 19 Sold merchandise to Tux Co. for $6, 000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $3,000. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux a $1,000 credit memorandum toward the $6,000 invoice to resolve the issue. 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22 30 Paid Aron Company the amount due from the August 1 purchase. sale less the return on August 10