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 $4,000 under credit terms of 1/10, n/30, ron destination, invoice 5 sold merchandise to Baird Corp. for 85,600 under credit term of 2/10, 1/60, ron destination. Involon dated August 5. The merchandise had cost $4,000. Purchnned merchandise from Waters Corporation for $7,000 under credit terms of 1/10, 1/45, po shipping point, invoice dated August 0. 9 Paid $150 cash for shipping charges related to the August 9 wale to Baird Corp. 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 ingentory. 12 After negotiations with waters corporation concerning problems with the purchases on August 3, Love received a price reduction from waters of $700 oft the $7,000 of goods purchased. Lowe's debited accounts payable for $700. 14 at Aron's request, Love's paid $480 cash for freight charges on the August 1 purchase, reducing the amount oved (accounts payable) to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 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 54,800 under credit terms of n/10, rom shipping point, Invoice dated August 19 The merchandise had cost $2,400. 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 $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. 30 Paid Aron Company the amount due from the August 1 purchase. + ances View transaction ist Journal entry worksheet 16 > 8 7 1 2 5 6 4 Purchased merchandise from Aron Company for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > 16 Purchased merchandise from Aron Company for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits Debit Credit Date General Journal Aug 01 View general journal Record entry Clear entry purchase. View transaction list Journal entry worksheet 29 Received Tox's cash payment for the amount due from the August 19 sale less the price a 30 Paid Aron company the amount doe from the August I purchase. View transaction list Journal entry worksheet Record cost of merchandise sold, $4,000. Note: Enter debits before credits Date General Journal Debit Credit Aug 05 View general journal Clear entry Record entry amount due from the August 1 purchase. View transaction list Journal entry worksheet Paid $150 cash for shipping charges related to the August 5 sale to Baird Corp. Note: Enter debits before credits. Debit Credit Date General Journal Aug 09 View general journal Clear entry Record entry amount due from the August 19 sale less the price allo 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list Journal entry worksheet Baird returned merchandise from the August 5 sale that was sold for $1,000. Note: Enter debits before credits. General Journal Debit Credit Date Aug 10 Record entry Clear entry View general journal amount. 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. View transaction list Journal entry worksheet
