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Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual Inventory system. (Hint: It will help to identify each receivable

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Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual Inventory system. (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 Company for $7,500 under credit term of 1/10, 1/30, FOB destination, invoice dated August 1. Aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug, 8 Purchased merchandise from waters Corporation for $5,400 under credit torms of 1/10, 1/45, POR shipping point, invoica dated August 8. Aug. 9 Paid $125 cash for shipping charges related to the August 5 male to nied Corp. Aug. 10 Baird returned merchandise from the August 5 sale that bad cont Love's $400 and was sold for $600. The merchandise was restored to inventory. Aug. 12 After negotiations with Water Corporation concerning problem with the purchases on August 8, Lowe's received credit memorandum from Watera granting price reduction of 6400 of the 35, 400 of goodil purchased. Aug. 14 At Aron's request, Lowe's paid $200 cash for freight pharges on the August 1 purch, reducing the amount owed to Aron Aug. 15 Received balance due from Bird Corp. for the lagunt le long the return on August 10. Nug. 10 Paid the amount due Matera corporation for the August purchase loun the price allowance from August 12. u 19 sold serohandise to Tu Co. for $4,000 ander credit term of w/10, on abipping point, involeo dated August 19. The merchandise had coat $2.400. aug. 22 tum requested a pesee reduction on the August 19 wale because the merchandise did not meet apocifications. Lowe's sont tux a 5500 credit memorandum toward the 14.000 invoice to resolve the g. 29 Received Pux cash payment for the amount due from the August 19 sale lean the price allowance from August 22 Mag. 30 Paid Aron Company the amount don from the Sagunt 1 purchase

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