Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. August 1 Purchased merchandise from Aron Company for $4,000 under credit terms of 1/10, 1/30, rob destination, invoice August 5 Sold merchandise to Baird Corporation for $2,800 under credit terns of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $2,000. August 8 purchased merchandise from Waters Corporation for $3,000 under credit terms of 1/10, 1/45, TOB shipping point, invoice dated August 8. August 9 Paid $170 cash for shipping charges related to the August 5 sale to Baird Corporation. August 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. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Love's received a price reduction from waters of $300 off the $3,000 of goods purchased. Love's debited accounts payable for $300 August 14 at Aron's request, Lowe's paid $400 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) to Aron. August 15 Sleceived balance duo from Baird Corporation for the August 5 sale loss the return on August 10. August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. August 19 sold morehandise to Tux Company for $2,400 under credit torns of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,200. August 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specieations. Love's gave a price reduction (allowance) of $400 to Tux and credited Tux' accounts receivable for that amount. Nugant 29 Received tux's cash payment for the amount due from the August 19 male less the price allowance from August August 30 Paid Aron Company the amount due from the August 1 purchase. 22 Journal entry worksheet