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 merchandiae from Aron Company for $5,000 under credit terns of 1/10, n/30, F0B destination, invoice dated August 1. Auguat 5 Sold merchandiae to Baird Corporation for $3,500 under credit terms ot 2/10, n/60, 50B destination, invoice dated hugust 5. The rerchandise had coat $2,000. Auguat 8 Purchased merchandiae from Waters Corporation for $4,000 under credit terma of 1/10, n/ 45 , Fol shipping point, invoice dated August 8. August 9 Paid $210 cash for shipping charges related to the Nugust 5 uale to alird Corporation. August 10 Baird returned merchandiae from the August 5 ale that had cout Iowe's $500 and was aold for \$1,000. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purehases on August B, Lowe's received a price reduction from Waters of $400 ofe the $4,000 of gooda purchased. Lowe's dehited accounts payable for $400. August 14 At Aron's request, Lowe's paid $410 cash for freight chargea on the hugust 1 purchase, reducing the amount owed (accounts payable) to Mron. August 15 Received balance due from Baird Corporation for the Auguat 5 ale less the return on August 10. August 18 Paid the amount due Waters Corporation for the August 9 purchase less the price allowance from August 12 . August 19 sold merchandiae to Tux Conpany for $3,000 under credit terms of n/10, F0a shipping point, invoice dated August 19. The merchandise had cost $1,500. 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 \$500 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 asle less the price allowance from Auguest 22 . August 30 Paid Aron Company the amount due fron the August 1 purchase. Journal entry worksheet Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10,n/30,FOB destination, invoice dated August 1. Note: Enter debits before cred ts