Prepare journal entries to record the following merchandising transactions of Lowe$$s$,$ which uses the perpetual inventory system and the gross method. 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 $$8,000$ under credit terms of $\frac{1}{10},\frac{n}{30},$ FOB destination, invoice dated

August $1.$

August $5$ Sold merchandise to Baird Corporation for $$5,600$ under credit terms of $\frac{2}{10},\frac{n}{60},$ FOB destination, invoice dated August

The merchandise had cost $$4,000.$

August $8$ Purchased merchandise from Waters Corporation for $$7,000$ under credit terms of $\frac{1}{10},\frac{n}{45},$ FOB shipping point, invoice

dated August $8.$

August $9$ Paid $$180$ 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 $$700$ off the $$7,000$ of goods purchased. Lowe's debited accounts payable for $$700.$

August $14$ At Aron's request, Lowe's paid $$250$ cash for freight charges on the August $1$ purchase, reducing the amount owed $($accounts

payable$)$ to Aron.

August $15$ Received 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 $$4,800$ under credit terms of $\frac{n}{10},$ FOB shipping point, invoice dated August $19.$ The

merchandise had cost $$2,400.$

August $22$ 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.

August $29$ Received Tux's cash payment for the amount due from the August $19$ sale less the price allowance from August $22.$

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

August $1$ Purchased merchandise from Aron Company for $$8,000$ under credit terms of $1/10,$ n$/30,$ FOB destination, invoice dated August $1.$

August $5$ Sold merchandise to Baird Corporation for $$5,600$ under credit terms of $2/10,$ n$/60,$ FOB destination, invoice dated August $5.$ The merchandise had cost $$4,000.$

August $8$ Purchased merchandise from Waters Corporation for $$7,000$ under credit terms of $1/10,$ n$/45,$ FOB shipping point, invoice dated August $8.$

August $9$ Paid $$180$ 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$$s received a price reduction from Waters of $$700$ off the $$7,000$ of goods purchased. Lowe's debited accounts payable for $$700.$

August $14$ At Aron$$s request, Lowe$$s paid $$250$ cash for freight charges on the August $1$ purchase, reducing the amount owed $($accounts payable$)$ to Aron.

August $15$ Received 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 $$4,800$ under credit terms of n$/10,$ FOB shipping point, invoice dated August $19.$ The merchandise had cost $$2,400.$

August $22$ 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.

August $29$ Received Tux$$s cash payment for the amount due from the August $19$ sale less the price allowance from August $22.$

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