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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

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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 1 in Accounts Payable-Aron) Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, 1/30, POB destination, invoice dated August 1. Aug. 5 Sold merchandise to Baird Corp. for 95,200 under credit terns of 2/10, 1/60, POB destination, Invoice dated August 5. The merchandise had cost $4,000. Aug. 8 Purchased merchandise from Waters Corporation for 85,400 under credit terns of 1/10, n/45, Po shipping point, invoice dated August 0. Aug. 9 Paid 0125 cash for shipping charges related to the August 5 sale to Baird Corp. Aug. 10 Baird returned merchandise from the August 5 sale that had cont 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 8, Lowe's received a credit monorandum from Waters granting a price reduction of $400 of the 5,000 of goods purchased Aug. 14 AL Aron's request, Lowe's paid 200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. Aug. 15 Received balance due from Baird Corp. for the August 5 solo less the return on August 10. Aug. 18 Pald the amount due Waters Corporation for the Augusto purchase less the price allowance y August 12. Aug. 19 sold merchandise to Tux Co. for $4,000 under credit terms of n/10, POB shipping point, invece dated August 19 The merchandise had cont 82,400. Aug. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications Lowe's sent Tux a 3500 credit memorandun toward the 04,800 invoice to resolve the inne. Aug. 29 Received Tux's cash payment for the amount duo from the August 19 sale less the price allowance from August 22. Aug. 30 Paid Aron Company the amount due from the August I purchase Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries

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