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 $5,000 under credit terms of 1/10,n/30, FoB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $3,500 under credit terms of 2/10,n/60, FOB destination, invoice dated August 5. The merchandise had cost $2,000. August 8 Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10,n/45, F08 shipping August 9 paint, invoice dated August 8 . August 10 Baird 5200 cash for shipping charges related to the August 5 sate to Baird Corporation. merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problens with the purchases on August 8 , Lowe's received a price reduction trom Waters of $400 off the $4,000 of goods purchased. Lowe's debited accounts August 14 At Aron's request, Lowe's paid $440 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 anount due Waters Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold eerchandise to Tux Conpany for $3, ,eeo 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 August 29 Received Tux's cash payment for the anount due from the August 19 sate less the price allowance from August. August 30 Paid Aron Company the amount due from the August 1 purchase. Journal entry worksheet 345678 16 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 credits. Journal entry worksheet 7816 Sold merchandise to Baird Corporation for $3,500 under credit terms of 2/10, n/60,FOB destination, invoice dated August 5. Note: Enter debits before credits. Record cost of merchandise sold, $2,000. Note: Enter debits before credits, Journal entry worksheet