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) Aug. 1 Purchased merchandise from Aron C any for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. s Sold merchandise to Baird Corp. for $4,980 under credit teres of 2/10, n/6e, FoB destination, invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Naters Corporation for $6,000 under credit terms of 1/18, n/45, FOB shipping point, invoice dated August 8. 9 Paid $170 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $580 and was sold for $1,ee9. The nerchandise was ook restored to inventory 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit Print menor andum from Waters granting a price reduction of $689 off the $6,999 of goods Furchased 14 At Aron's request, Lowe's paid $210 cash for freight charges on the August 1 purchase, reducing the amount oved to Aron. 15 Received balance due fron Baird Corp. for the August 5 sale less the return on August 10 18 Paid the amount due Waters Corporation for the August 8 purchase less the price alloance fron August 12 19 Sold nerchandise to Tux Co. for $4,200 under credit terms of n/10, FOS shipping point, invoice dated August 19. The merchandise had cost $2,100. 22 Tux requested a price reduction on the August 19 sale because the nerchandise did not neet specifications. Lowe's sent Tux a $700 credit nenorandum toward the $4,200 invoice to resolve the issue. 29 Recelved Tux's cash paynent for the amount due from the August 19 sale less the price allouance from August 22. 30 Paid Aron Company the anount due from the August 1 purchase. View transaction list Journal entry worksheet 12 3 4 567.16 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits. Date General Journal Debit Aug 01 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) Aug. 1 Purchased merchandise from Aron C any for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. s Sold merchandise to Baird Corp. for $4,980 under credit teres of 2/10, n/6e, FoB destination, invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Naters Corporation for $6,000 under credit terms of 1/18, n/45, FOB shipping point, invoice dated August 8. 9 Paid $170 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $580 and was sold for $1,ee9. The nerchandise was ook restored to inventory 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit Print menor andum from Waters granting a price reduction of $689 off the $6,999 of goods Furchased 14 At Aron's request, Lowe's paid $210 cash for freight charges on the August 1 purchase, reducing the amount oved to Aron. 15 Received balance due fron Baird Corp. for the August 5 sale less the return on August 10 18 Paid the amount due Waters Corporation for the August 8 purchase less the price alloance fron August 12 19 Sold nerchandise to Tux Co. for $4,200 under credit terms of n/10, FOS shipping point, invoice dated August 19. The merchandise had cost $2,100. 22 Tux requested a price reduction on the August 19 sale because the nerchandise did not neet specifications. Lowe's sent Tux a $700 credit nenorandum toward the $4,200 invoice to resolve the issue. 29 Recelved Tux's cash paynent for the amount due from the August 19 sale less the price allouance from August 22. 30 Paid Aron Company the anount due from the August 1 purchase. View transaction list Journal entry worksheet 12 3 4 567.16 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits. Date General Journal Debit Aug 01
