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. I purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, POB destination, invoice dated August 1. 5 sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, Invoice dated August 5. The merchandise had cost $4,000. 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, TOB shipping point, invoice dated August 8. 9 Paid $125 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 $400 and was sold for $600. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from waters of $400 off the $5,400 of goods purchased. Lowe's debited accounts payable for $400. 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August I purchase, reducing the amount owed (accounts payable) to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 10 Paid the amount due Waters Corporation for the August 8 purchase lose the price allowance from August 12. 19 Bold merchandise to Tux co. for $4,800 under credit terms of n/10, POB shipping point, Invoice dated August 19. The morchandise had cost $2,400. 22 Tux requested price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's gave a price reduction (allowance) of $500 to Tux, and credited Tux's accounts receivable for that amount. 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. View transaction list 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $4 merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchase price reduction from Waters of $400 off the $5,400 of goods purchased. Lowe's de 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 pu (accounts payable) to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on A 18 Paid the amount due Waters Corporation for the August 8 purchase less the price 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping The merchandise had cost $2,400. 22 Tux requested a price reduction on the August 19 sale because the merchandis Lowe's gave a price reduction (allowance) of $500 to Tux, and credited Tux amount. 29 Received Tux's cash payment for the amount due from the August 19 sale less the 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list X 16 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. 1 erms of 2 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. 3 Record cost of merchandise sold, $4,000. Credit 4 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. 5 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. Note: - Journal entry has been entered Record entry Clear entry View general Journal 9 Paid $125 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 $40 merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases price reduction from waters of $400 off the $5,400 of goods purchased. Lowe's deb 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 pur (accounts payable) to Aron. 15 Received balance due from Baird corp. for the August 5 sale less the return on Au 18 Paid the amount due Waters Corporation for the August 8 purchase less the price a 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, TOB shipping The merchandise had cost $2,400. 22 Tux requested a price reduction on the August 19 sale because the merchandise Love's gave a price reduction (allowance) of $500 to Tux, and credited Tux's amount. 29 Received Tux'cash payment for the amount due from the August 19 sale less the p 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list 16 6 Baird returned merchandise from the August 5 sale that was sold for $600. erms of 7 Record the merchandise, cost $400, that was restored to inventory. 8 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from Waters of $400 off the $5,400 of goods purchased. Lowe's debited accounts payable for $400. Credit 9 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) to Aron. Note: = journal entry has been entered Record entry Clear entry View general Journal Proy 1 of 9 Paid $125 cash for shipping charges rei 10 Baird returned merchandise from the August 5 sale that had cost merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the price reduction from Waters of $400 off the $5,400 of goods purchased. 14 At Aron's request, Lowe's paid $200 cash for freight charges on the Au (accounts payable) to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the re 18 Paid the amount due waters Corporation for the August 8 purchase less t 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB The merchandise had cost $2,400. 22 Tux requested a price reduction on the August 19 sale because the Lowe's gave a price reduction (allowance) of $500 to Tux, and cred amount. 29 Received Tux's cash payment for the amount due from the August 19 salo 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list 16 erms of 10 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 11 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. 12 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. Credit 13 Record cost of merchandise sold, $2,400. 14 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 $500 to Tux, and credited Tux's accounts receivable for that amount. Note: = journal entry has been entered Record entry Clear entry View general journal 12 After negotiations with Waters Corporation concerning problems with price reduction from Waters of $400 off the $5,400 of goods purchase 14 At Aron's request, Lowe's paid $200 cash for freight charges on the (accounts payable) to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the 18 Paid the amount due Waters Corporation for the August 8 purchase less 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, F The merchandise had cost $2,400. 22 Tux requested a price reduction on the August 19 sale because the Lowe's gave a price reduction (allowance) of $500 to Tux, and cr- amount. 29 Received Tux's cash payment for the amount due from the August 19 sale 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list terms of n/10, FOB shipping point, invoice dated August 19. 16 erms of 13 Record cost of merchandise sold, $2,400. 14 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's gave a priofuseduction (allowance) of $500 to Tux, and credited Tux's accounts receivable for that amount. Credit 15 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. 16 Pald Aron Company the amount due from the August 1 purchase. Note : - Journal entry has been entered Record entry Clear entry View general journal