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 fron Aron Company for $8.000 under credit terms of 1/10, 1/38, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $5.600 under credit terms of 2/10, 1/6, FOB destination, Invoice dated August 5. The merchandise had cost $4,000. # Purchased merchandise fron Waters Corporation for $7,000 under credit terns of 1/10, 1/45, FOB shipping point, invoice dated August 8. 9 Paid $200 cash for shipping charges related to the August. 5 sole to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost towels $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 price reduction from waters of 3700 off the 57,000 of goods purchased. Lowe's debited accounts payable for $700. 14 At Aron's request, Lowe's paid $320 cash for freight charges on the August 1 purchase, reducing the anount Owed (accounts payable) te Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 1e. 18 Pas the amount due waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping point, Invoice dated August 19. The merchandise had cost $2,400 22 Tux quested a price reduction on the August 19 sale because the merchandise did not specifications. Lowe's gave a price reduction allowance) of $800 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 se Paid Aron Company the amount due from the August 1 purchase. Journal entry worksheet Journal entry worksheet