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 $8,000 under credit torna of 1/10, 1/30, po dostination, invoice dated August 1. 5 Bold merchandise to aird Corp. for $5,600 under credit terns of 2/10, 1/60, Pon destination involve dated Rugant 5. The merchandise had cost $4,000. 8Purchased merchandise from Water Corporation for $7,000 under credit turns of 1/10, 1/45, FOB shipping point, Invoice dated August 8. y paid $150 cash for shipping charges related to the August 5 wale to Baird corp. 10 Baird returned merchandise from the August 5 sale that had cost Love's $500 and was sold for $1,000. The merchandise was restored to inventory. 12 Atter negotiation with waters Corporation concering problems with the purchases on August 8, Low to received a price reduction from waters of 5700 ott the $7,000 of goods purchased. Love's debited accounts payable for $700. 14 at Aron's request. Loves paid $40 cash for freight charges on the August 1 purchase, reducing the anont owed (accounts payable) to Aron. 15 Received balance due from Hard Corp. for the August 5 sale loss the return on August 10. 18 Paid the amount due Waters Corporation for the August purchase less the price allowance from August 12. 19 Sold merchandise to Tex Co. for $4,600 under credit terms of 1/10, TOB shipping point, Lavoice dated August 19. The merchandise had cost $2.400. 22 Tux requested price reduction on the August 19 sale because the merchandise did not meet specifications. le for that Love's gave a price reduction allowance) of $800 to Tux, and credited Tux' Ccounts receive amount. 29 Received Tux 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. moes View transaction lit Journal entry worksheet 7 2 5 6 B 16 3 After negotiations with Waters Corporation concerning problems with the Motorosz 29 keceived Tux's cash payment for the amount due from the August 19 sale less the price a 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list Journal entry worksheet 5800 to Tux, and credited Tux's accounts r amount. 29 Received Tux's cash payment for the amount due from the August 19 sale less the price a 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list Book Journal entry worksheet Ask 36 Tc TW The merchandise bad cost $2,400. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not mee Lowe's gave a price reduction allowance) of $800 to Tux, and credited Tux's accounts rec 29 Received tux's cash payment for the amount due from the August 19 sale less the price all 30 Paid Aron Company the amount due from the August 1 purchase. amount. View transaction list Journal entry worksheet 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet Lowe's gave a price reduction (allowance) of $800 to Tux, and credited Tux's accounts recei 29 Received Tux's cash payment for the amount due from the August 19 sale loss the price allow. 30 Paid Aron Company the amount due from the August 1 purchase. amount. View transaction list Journal entry worksheet
