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 merehandise from Aron company for $9,000 under credit terme of 1/10, n/30, ros destination, involoe dated augubt 1. August 5 sold morchandise to Baird corporation for $6,300 under eredit terms of 2/10,n/60, Fok destination, invoice dated August 5. The merchandise had cost $4,000. August \& Porchased merehandise from Naters Corporation for $8,000 under oredit torms of 1/10, a/45, foB ahipping point, involce dated August 8 . Aaguet: 9 Paid $240 cash for shipping chargen related to the August 5 sale to Baird Corporation. August 10 Baird returned morchandise from the August 5 sale that had cost towe's $500 and was sold for $1,000. The merchandise was restored to inventory. August 12 After negotiations with watere Corporation concerning problems with the purchases on Auguit 8 , Lowe's received a price reduction from Waters of $800 of the $8,000 of goods purchased. Lowe's debited accounts payable for August 14 At Aron's request, Lowo's paid $440 cash for freight charges on the august 1 purchase, reducing the amount oved (accounts payable) to Aron. August 15 Received balance due from Baird Corporation for the August 5 sale less the return on August 10. Auguet 18 Paid the anount due Waters Corporation for the August \& purehase less the price allowancd from August 12 . Aagunt 19 sold merchandise to Tux Company for $5,400 under credit terms of n/10, Fon ahipping point, invoice dated August 19. The merchandise had cost $2,700. August 22 Tux reguested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's gave a price reduction (allowance) of $900 to Tux and credited Tux's accounts receivable for that anount. Rugust 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Aron Company the amount due from the August 1 purchase