Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method: August I Porchased berchandise froe Aren Company for $7,5e0 under credit terns of 1/10,n/38, Fos destination, invoice August o Sated Aloust 1 . Aujust 5 Sold nefchandise to Baird Corporation for $5,2e under credit terns of 2/10,n/60, Fos destination, invoice dated August 5 . The sorchandise had coss $4,600. Augest a. Purchased serchandise fron Waters Corporation for 55,400 under credit terns of 1/10,n/45, F0B shipping Aupust 9 Paint, invoice dated Aagust Auguit 14 At Aron's request, Love's paid $200 cash for frelght charges on the August 1 purchase, reducing the anount and (accounts pryable) to Aron. August is Received balance due fron Baird Corporation for the August 5 sale less the return on August 10 , A loug's gave a price reduction (ailionance) of 19 sale to because the merchandise aid not meet specifications. August 20 heunt. Achust il Paid Aron Coopany the anount oue froe the August I purchase