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 August 1 in Accounts Payable-Aron.) Aug. 1 Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, POB destination, Invoice dated August 1. 5 sold merchandise to Baird Corp. for $3,500 under credit terns of 2/10, n/60, POB destination, invoice dated August 5. The merchandise had cost $2,000. 8 Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, 1/45, POB shipping point, invoice dated August 8. 9 Paid $140 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 Love'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 8, Lowe's received a credit memorandum from Waters granting a price reduction of $400 off the $4,000 of goods purchased. 14 At Aron's request, Love's paid $250 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold merchandise to Tux Co. for $3,000 under credit terms of n/10, POB shipping point, Invoice dated August 19. The merchandise had cost $1,500. 22 Tux requested a price reduction on the August 19 ale because the merchandise did not meet specifications. Love's sent Tux a $500 credit memorandum toward the $3,000 invoice to resolve the issue. 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. 30 Paid Aron Company the amount due from the August 1 purchase. aces Journal entry worksheet Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Note: Enter debits before credits. General Journal Date Aug 08 Debit Credit Record entry Clear entry View general Journal Journal entry worksheet Baird returned merchandise from the August 5 sale that was sold for $1,000. Note: Enter debits before credits General Journal Date Aug 10 Debit Credit Record entry Clear entry View general Journal Journal entry worksheet Record the merchandise, cost $500, that was restored to inventory. Note: Enter debits before credits. Date Aug 10 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Note: Enter debits before credits. Date General Journal Debit Credit Aug 15 Record entry Clear entry View general journal Journal entry worksheet