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 terms of $1/10,$ n$/30,$ F$0$B destination, invoice

dated August $1.$

August $5$ Sold merchandise to Baird Corporation for $$4,900$ under credit terms of $\frac{2}{10},\frac{n}{60},$ FOB destination, invoice

dated August $5.$ The merchandise had cost $$3,000.$

August $8$ Purchased merchandise from Waters Corporation for $$6,000$ under credit terms of $1/10,$ n$/45,$ F$0$B shipping

point, invoice dated August $8.$

August $9$ Paid $$270$ 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

received a price reduction from Waters of $$600$ of $f$ the $$6,000$ of goods purchased. Lowe's debited accounts

payable for $$600.$

August $14$ At Aron's request, Lowe's paid $$210$ cash for freight charges on the August $1$ purchase, reducing the amount

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 $$4,200$ under credit terms of n$/10,$ F$0$B shipping point, invoice dated

August $19.$ The merchandise had cost $$2,100.$

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 $$700$ 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 August

August $30$ Paid Aron Company the amount due from the August $1$ purchase.