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 Augustin Accounts Payable Aron Aug. 1Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, 1/30 Foo destination, invoice doted August 1. Sold merchandise to Bird Corp. for 54,900 under credit terms of 2/10, 1/60, rol destination, Invoice dated August 5. The merchandise had cost $3,000 8 Purchased merchandise from waters Corporation for $6,000 under credit terms of 1/10, 1/45) FOB shipping point, Invoice dated August 8 9 Paid $110 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 $500 and was sold for $1.000, the merchandise was restored to inventory. 12 After negotiations with waters Corporation concerning problems with the purchases on August 3, Lowe's received a price reduction from waters of 5600 off the 50,000 of goods purchased. Lowe's debited accounts payable for $600. 14 At Aron's request. Lowe's paid $300 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) to Aron 15 Received balance due from Bird Corp. for the August 5 sale less the return on August 10. 15 Paid the amount due waters Corporation for the August purchase less the price allowance from August, 12 19 sold merchandise to Tu Co. for $4,200 under credit terns of 1/10, shipping point invoice dated August 19. The archandise had cost $2,100 22 Tux requested a price reduction on the August 19 sale because the merchandise did not wet specifications. Lots gave price reduction allowance) of $700 to Tux, and credited Tuis accounts receivable for the 29 received ux cash payment for the amount due from the August 19 sale is the price allowance from August 22. 30 Pald Aron Company the mount due from the August 1 purchases View transaction ist Journal entrv worksheet w 1 o Nex