Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Hint It will help to identify each receivable and payable for example, record the purchase on August 1 in Accounts Payable-Aron Aug. 1 Purchased merchandise from Aron Company for $9,000 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $6,300 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. 8 Purchased merchandise from Waters Corporation for $8,000 under credit terms of 1/10, 1/45, FOB shipping point, invoice dated August 8. 9 Paid $140 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 $50e and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from Waters of $800 off the $8,000 of goods purchased. Lowe's debited accounts payable for $800. 14 At Aron's request, Lowe's paid $460 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) 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 $5,400 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,700. 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 $900 to Tux, and credited Tux's accounts receivable for that amount. 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. Journal entry worksheet 1 2 3 4 5 6 7 8 16 > Purchased merchandise from Aron Company for $9,000 under credit terms of 1/10, n/30, FOB destination, Invoice dated August 1. Note: Enter debits before credits. Date General Journal Debit Credit Aug 01 Record entry Clear entry View general Journal Journal entry worksheet 1 2. 3 4 5 6 7 8 16 > ..... Sold merchandise to Baird Corp. for $6,300 under credit terms of 2/10, n/60, FOB destination, Invoice dated August 5. Note: Enter debits before credits Date General Journal Debit Credit es Aug 05 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 16 Record cost of merchandise sold, $4,000. Note: Enter debits before credits. Date General Journal Debit Credit Aug 05 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 .... 16 Purchased merchandise from Waters Corporation for $8,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Note: Enter debits before credits. Date General Journal Debit Credit Aug 08 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 4 5 6 7 8 16 > ..... Paid $140 cash for shipping charges related to the August 5 sale to Baird Corp. Note: Enter debits before credits. Date General Journal Debit Credit Aug 09 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 16 Baird returned merchandise from the August 5 sale that was sold for $1,000. Note: Enter debits before credits. Date General Journal Debit Credit Aug 10 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 16 ... Record the merchandise, cost $500, that was restored to inventory. Note: Enter debits before credits. Date General Journal Debit Credit Aug 10 Record entry Clear entry View general journal Journal entry worksheet 4 3 7 5 6 00 8 ( 1 2 16 > After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from Waters of $800 off the $8,000 of goods purchased. Lowe's debited accounts payable for $800. Note: Enter debits before credits. Date General Journal Debit Credit Aug 12 Record entry Clear entry View general journal Journal entry worksheet 1 4 5 6 7 8 9 16 At Aron's request, Lowe's paid $460 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) to Aron. Note: Enter debits before credits. Date General Journal Debit Credit Aug 14 Record entry Clear entry View general Journal Journal entry worksheet 1 5 6 7 8 9 10 16 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Note: Enter debits before credits. Date General Journal Debit Credit Aug 15 Record entry Clear entry View general journal Journal entry worksheet 1 6 7 8 9 10 11 16 > Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. Note: Enter debits before credits. Date General Journal Debit Credit Aug 18 Record entry Clear entry View general journal Journal entry worksheet 1 7 8 9 10 11 12 16 ... Sold merchandise to Tux Co. for $5,400 under credit terms of n/10, FOB shipping point, invoice dated August 19. Note: Enter debits before credits. Date General Journal Debit Credit Aug 19 Record entry Clear entry View general journal Journal entry worksheet 1 8 9 10 11 12 13 .... 16 Record cost of merchandise sold, $2,700. Note: Enter debits before credits Date General Journal Debit Credit Aug 19 Record entry Clear entry View general journal Journal entry worksheet 1 9 10 11 12 13 14 16 #O. 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 $900 to Tux, and credited Tux's accounts receivable for that amount. Note: Enter debits before credits. Date General Journal Debit Credit Aug 22 Record entry Clear entry View general journal Journal entry worksheet 1 10 11 12 13 14 15 16 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Note: Enter debits before credits. Date General Journal Debit Credit Aug 29 Record entry Clear entry View general Journal Journal entry worksheet 1 9 10 11 12 13 14 15 16 Paid Aron Company the amount due from the August 1 purchase. Note: Enter debits before credits. Date General Journal Debit Credit Aug 30 Record entry Clear entry View general journal