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 $7,500 under credit terms of 1/10,n/30,FOB destination, invoice dated August 1 . Auguat 5 sold merchandiae 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 B Purchased merchandise fron Waters Corporation for $5,400 under eredit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $125 eash for shipping charges related to the August 5 sale to Baird Corporation. August 20 Baird returned merchandise froa the August 5 sale that had cost Lowe'g $400 and was sold for $600. The merchandize was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8 , Lowe' a received a price reduction from Watern of $400 oft the $5,400 of goods purchased. Lowe'n debited accounts payable for $400. August 14 At Aron's request, Lowe's paid $200 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 19 sold 12 . August 19 sold merchandise to Tux Company for $4,800 under oredit termn of n/10, F08 ahipping point, August 22 Tux requented a price reduetion on the Auguat 19 sale because the merchandise did not meot. specifications. Lowe's gave a price reduction (allowance) of $500 to Tux and eredited Tux's accounta receivable for that amount. August 29 Received Tux's eash payment for the amount due from the August 19 alle leas the price allowance from Augunt 22 . Journal entry worksneec 7816 Purchased merchandise from Aron Company for $7,500 unyler credit terms of 1/10,n/30,FOB destination, involce dated August 1. Note: Enter debits before credits