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 recelvable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron. August 1 Purchased merchandise from Aron Conpany for $8,060 under credit terms of 1/10,n/30, F0B destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $5,600 under credit terms of 2/10, n/60, F08 destination, invoice dated August 5. The merchandise had cost $4,000. August 8 Purchased perchandise fron Waters Corporation for $7,000 under credit terms of 1/18, n/45, F08 shipping point, invoice dated August 8 . August 9 Paid $150 cash for shipping charges related to the August 5 sale to Baird Corporation. August 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $500 and was sold for $1, eae. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Love's received a price reduction from Waters of $700 off the $7,000 of goods purchased. Lowe's debited accounts payable for August 14 At Aron's request, Lowe's paid $470 cash for freight charges on the August 1 purchase, reducing the anount owed (accounts payable) to Aron. August. 15 Received balance due from Baird Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12 . August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, FoB shipping point, invoice dated August 22 August 19. The merchandise had cost $2,400. 2. Tux requested a price reduction on the Augusy 19 sale because the nerchandise did not seet specifications. Lowe's gave a price reduction (allowance) of s8e0 to Tux and credited Tux's accounts receivable for that anount. August 29 Received Tux's cash payment for the anount due fron the August 19 sale less the price allowance from August August 30 Paid Aron Company the amount due fron the August 1 purchase. Journal entry worksheet 5 16 Purchased merchandise from Aron Company for $8,000 under credit terms of 1/10,n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits