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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

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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 $6,000 under credit terms of 1/10,n/30, FOB destination, invoice August 5 Sold merchandise to Eaird Corporation for $4,200 under credit terms of 2/10,n/60, FOB destination, invoice August 8. Purchased merchandise fromandise had cost \$3,000. August 8 Purchased merchandise from Waters Corporation for $5,000 under credit terms of 1/10,n/45, foB shipping August 9 Paid, $190 cash for shipping charges related to the August 5 sale to Baird Corporation. August 10 Baird returned merchandise trom the August 5 sale that had cost Lowe's $50a and was sold for $1,000. The August 12 Affererandise 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 $50 off the $5,000 of goods purchased. Low's debited accounts August 14 At Aron's request Aust 14 At Aron's request, Lowe's paid $130 cash for freight charges on the August 1 purchase, reducing the amount oved (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 $3,600 under credit terms of n/10, FOB shipping point, invoice dated August 22 Tux requested a price reduction on $1,800. August 22 Thux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. amount. gave a price reduction (atowance) of $600 to Tux and credited Tux's accounts receivable for that August 29 Received Tux's cash paysent for the amount due from the August 19 sale less the price allowance from August August 30 Paid Aron Company the anount due fron the August 1 purchase. Journal entry worksheet Purchased merchandise from Aron Company for $6,000 under credit terms of 1/10,n/30, Fo8 destination, involce dated August 1. None: Enter debts before oreds

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