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, 1/30, FOB destination, Invoice dated August 1. 5 Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB 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, n/45, FOB shipping point, invoice dated August 8. 9 Paid $160 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,eee. 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 $4,eee of goods purchased. Lowe's debited accounts payable for $400. 14 At Aron's request, Lowe's paid $390 cash for freight charges on the August 1 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 19 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, FOB shipping point, invoice dated August 19. The merchandise had cost $1,5ee. 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 $5ee 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 Journal entry worksheet Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits. Date General Journal Debit Credit Aug 01 Record entry Clear entry View general journal Saved View transaction list Journal entry worksheet O C Saved View transaction list Journal entry worksheet m 1 Saved View transaction list Journal entry worksheet Journal entry worksheet Record the merchandise, cost $500, that was restored to inventory. Note: Enter debits before credits. Date General Journal Debit Credit Aug 10 Record entry Clear entry View general journal Journal entry worksheet O DELLA View transaction list Journal entry worksheet o BI DOLL View transaction list Journal entry worksheet ORI DLL View transaction list Journal entry worksheet ORE DOLL View transaction list Journal entry worksheet o DOLL Journal entry worksheet o W DLL View transaction list Journal entry worksheet O BE . DALL View transaction list Journal entry worksheet 1 9 10 11 12 13 14 15 16 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Note: Enter debits before credits General Journal Debit Credit Date Aug 29 Record entry Clear entry View general Journal DLL LO SL Journal entry worksheet O BI DALL
