Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory...
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Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory syst and the gross method. August 1 Purchased merchandise from Aron Company for $8,000 under credit terms of 1/10, n/30, FOB destination, inv dated August 1. August 5 Sold merchandise to Baird Corporation for $5,600 under credit terms of 2/10, n/60, FOB destination, invoi dated August 5. The merchandise had cost $4,000. August 8 Purchased merchandise from Waters Corporation for $7,000 under credit terms of 1/10, n/45, FOB shipping p invoice dated August 8. August 9 Paid $120 cash for shipping charges related to the August 5 sale to Baird Corporation. August 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $500 and was sold for $1,000. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's red a price reduction from Waters of $700 off the $7,000 of goods purchased. Lowe's debited accounts payable $700. August 14 At Aron's request, Lowe's paid $390 cash for freight charges on the August 1 purchase, reducing the amoun owed (accounts payable) to Aron. 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 allowance from August 12. August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400. August 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications Lowe's gave a price reduction (allowance) of $800 to Tux and credited Tux's accounts receivable for that amount. August 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from Augu August 30 Paid Aron Company the amount due from the August 1 purchase. 22. View transaction list View journal entry worksheet No Date General Journal 1 Aug 01 Merchandise inventory Accounts payable-Aron 2 Aug 05 Accounts receivable-Baird Sales Debit Credit 8,000 8,000 5,600 5,600 3 Aug 05 Cost of goods sold 4,000 Merchandise inventory 4,000 4 Aug 08 Merchandise inventory 7,000 Accounts payable-Waters 7.000 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory syst and the gross method. August 1 Purchased merchandise from Aron Company for $8,000 under credit terms of 1/10, n/30, FOB destination, inv dated August 1. August 5 Sold merchandise to Baird Corporation for $5,600 under credit terms of 2/10, n/60, FOB destination, invoi dated August 5. The merchandise had cost $4,000. August 8 Purchased merchandise from Waters Corporation for $7,000 under credit terms of 1/10, n/45, FOB shipping p invoice dated August 8. August 9 Paid $120 cash for shipping charges related to the August 5 sale to Baird Corporation. August 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $500 and was sold for $1,000. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's red a price reduction from Waters of $700 off the $7,000 of goods purchased. Lowe's debited accounts payable $700. August 14 At Aron's request, Lowe's paid $390 cash for freight charges on the August 1 purchase, reducing the amoun owed (accounts payable) to Aron. 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 allowance from August 12. August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400. August 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications Lowe's gave a price reduction (allowance) of $800 to Tux and credited Tux's accounts receivable for that amount. August 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from Augu August 30 Paid Aron Company the amount due from the August 1 purchase. 22. View transaction list View journal entry worksheet No Date General Journal 1 Aug 01 Merchandise inventory Accounts payable-Aron 2 Aug 05 Accounts receivable-Baird Sales Debit Credit 8,000 8,000 5,600 5,600 3 Aug 05 Cost of goods sold 4,000 Merchandise inventory 4,000 4 Aug 08 Merchandise inventory 7,000 Accounts payable-Waters 7.000
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