Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron.) August 1 Purchased merchandise from Aron Company for $7,500 unier credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $5,200 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 $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $125 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 $400 and was sold for $600. 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 credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased. August 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed 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 sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue. 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. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement 5 of 5 Tournalise the marchandicina tunnections The Conoral Indoor trial balance and schedules of accounts receivable and accounts Impact on Income Next

Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payoble-Aron.) August 1 Purchased merchandise fron Aron Conpany for $7,500 uhier eredit teras of 1/10, n/30, Fos destination, invoice dated August 1 . August 5 sold merchandise to Baird Corporation for $5,200 under credit terma of 2/10, n/60, pon destination, invoice dated August 5. The merehandise had cost $4,000. August Burchased morehandise fran Katers Corporation tor $5,400 under credit term of 1/10, n/45, rob ehipping point, involce dated August August 9 Paid $125 eash for shipping eharges related to the August 5 sale to Baird corporation Auguet 10 Baird roturned merchandise from the August 5 sale that had cost lowo: 5400 and was sold for 5600 . The merchandise was restored to inventory, August 12 After negotiations with waters corporation concerning probless with the purchases on August 8 , towe's recelved a eredit memorandum from Waters granting a price reduetion of $400 oft the $5,400 of gocda purehased. August 14At Aron's request, Lowe's paid 5200 essh for freight charges on the August 1 purchase, redueing the anount owed to Aron. August 15 Received balance due from Baird corporation for the Auguat 5 aate lea the retura on August 10. August 18 Paid the amount due watero Corporatien for the August 8 purchase less the price allewance froe August 12. August 19 sold merehandise to Tux Company for s4, Bo0 ander eredit terns of n/10, rob shipping polat, involee dated Auguet 19, the rerehandise had cost $2,400. Nugust 22 Tux requested a price reduction on the August 19 bale because the nerehandise did not neet ipecitieationa. Lowe's sent rux a $500 credit memorandum tosard the $4,600 invoice to resolve the issue. Nugust 29 heceived Tux's cash payment for the anount due fros the hugust 19 sale less the prioe allowance fron Nuguet August 30 Paid Aron Company the anount due fros the August 1 purchate. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10,n/30, FOB destination, invoice dated August 1. 2 Sold merchandise to Baird Corporation for $5,200 under credit terms of 2/10,n/60, FOB destination, invoice dated August 5. 3 The merchandise sold to Baird had cost $4,000. 4 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10,n/45, FOB shipping point, invoice dated August 8. 5 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corporation. 6 Baird returned merchandise from the August 5 sale that had sold for $600. 7 The cost of the merchandise returned by Lowe's was $400. The merchandise was restored to inventory. 8 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased. 9 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. 0 Received balance due from Baird Corporation for the August 5 sale less the return on August 10 . 1 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. 2 Sold merchandise to Tux Company for $4,800 under credit terms of n/10,FOB shipping point, invoice dated August 19. 3 The cost of the merchandise sold merchandise to Tux was $2,400. 14. Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue. 15 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. 16 Paid Aron Company the amount due from the August 1 purchase