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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. Aug. 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. Aug. 1 Purchased merchandise from Aron Company for exist9,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for exist6, 300 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost exist4,000. 8 Purchased merchandise from Waters Corporation for exist8,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 paid exist100 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Lowe's exist500 and was sold for exist1,000. The merchandise was restored to inventory. 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 exist800 off the exist8,000 of goods purchased. 14 At Aron's request, Lowe's paid exist260 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold merchandise to Tux Co. for exist5, 400 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost exist2, 700. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux a exist900 credit memorandum toward the exist5, 400 invoice to resolve the issue. 29. Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. 30 Paid Aron Company the amount due from the August 1 purchase

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