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 1in Accounts Payable-Aron.) Aug. Aug 1 Purchased merchandise from Aron Company for $7,500 under credit terns of 1/10, n/30, FOB destination, invoice dated August 1. Aug 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug 3 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. Aug. 18 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 Aug. 12 After negotiations with waters Corporation concerning problems with the purchases on August 3, Lowe's received a credit memorandum from Waters granting a price reduction of 5000 off the 55,400 of goods purchased. At Aron request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. Aug. is Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Aug. 18 Pald the amount due waters Corporation for the August 3 purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Tux Co. for 54,800 under credit terms of n/10, FOS shipping point, invoice dated August 19. The merchandise had cost $2,400 Aug. 22 Tux requested a price eduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux 350 credit memorandus toward the $4,800 invoice to resolve the issue. Aug 29 Received Tue's cash payment for the amount due from the August 19 sale less the price allowance from August 22 AUR 30 Pald Aron Company the amount due from the August 1 purchase. Income Statement Impact on Income Requirement General General Schedule of Journal Trial Balance Schedule of Ledger Receivables Payables Prepare a multiple step income statement through the calculation of gross profit. Lowe's Company Income Statement For the Month Ended August 31, 2017 $ 0 Sales 10,000 0 (10,000) (10,000) 0 Operating expenses Dr 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 1in Accounts Payable-Aron.) Aug. Aug 1 Purchased merchandise from Aron Company for $7,500 under credit terns of 1/10, n/30, FOB destination, invoice dated August 1. Aug 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug 3 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. Aug. 18 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 Aug. 12 After negotiations with waters Corporation concerning problems with the purchases on August 3, Lowe's received a credit memorandum from Waters granting a price reduction of 5000 off the 55,400 of goods purchased. At Aron request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. Aug. is Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Aug. 18 Pald the amount due waters Corporation for the August 3 purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Tux Co. for 54,800 under credit terms of n/10, FOS shipping point, invoice dated August 19. The merchandise had cost $2,400 Aug. 22 Tux requested a price eduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux 350 credit memorandus toward the $4,800 invoice to resolve the issue. Aug 29 Received Tue's cash payment for the amount due from the August 19 sale less the price allowance from August 22 AUR 30 Pald Aron Company the amount due from the August 1 purchase. Income Statement Impact on Income Requirement General General Schedule of Journal Trial Balance Schedule of Ledger Receivables Payables Prepare a multiple step income statement through the calculation of gross profit. Lowe's Company Income Statement For the Month Ended August 31, 2017 $ 0 Sales 10,000 0 (10,000) (10,000) 0 Operating expenses Dr
