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 $$7,000$ under credit terms of $\frac{1}{10},\frac{n}{30},$ F$0$B destination, involce dated August $1.$

August $5$ Sold merchandise to Baird Corporation for $$4,900$ under credit terms of $\frac{2}{10},\frac{n}{60},$ F$0$B destination, invoice dated August $5.$ The merchandise had cost $$3,000.$

August $8$ Purchased merchandise from Waters Corporation for $$6,000$ under credit terms of $\frac{1}{10},\frac{n}{45},$ F$0$B shipping point, invoice dated August $8.$

August $9$ Paid $$260$ 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 $8,$ Lowe's received a price reduction from Waters of $$600$ off the $$6,000$ of goods purchased. Lowe's debited accounts

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 $15$ Recelved balance due from Baird Corporation for the August $5$ sale less 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 merchandise to Tux Company for $$4,200$ under credit terms of $\frac{n}{10},$ FOB shipping point, invoice dated

August $22$ Tux requ. The merchandise had cost $$2,100.$

Lowe's gaved a price reduction on the August $19$ sale because the merchandise did not meet specifications. anount.

August $29$ Received $22.$

August $30$ Paid Aron Company the amount due from the August $1$ purchase.

Journal entry worksheet

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$8$

$9$

$10$

$1112$

$13$

$....$

$16$

Received balance due from Baird Corporation for the August $5$ sale less the return on August $10.$

Nate: Enter debits before credits:

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