Problem 4-2A Preparing journal entries for merchandising activities system LO p1, p2

Return to question 6 Problem 4-2A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 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.) uts Aug. 1 Purchased merchandise from Aron Company for $6,000 under credit terms of 1/10, n/30, POB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $4,200 under credit terms of 2/10, n/60, POB destination, Invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Waters Corporation for $5,000 under credit terms of 1/10, n/45, POB shipping point, invoice dated August 8. 9 Paid $120 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 Love's $500 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, Love's received a credit memorandum from Waters granting a price reduction of $500 off the $5,000 of goods purchased. 14 At Aron's request, Lowe's paid $430 cash for freight charges on the August i 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 allowane from August 12. 19 sold merchandise to Tux Co. for $3,600 under credit terms of n/10, POD shipping point, fnvoice dated August 19. The merchandise had cost $1,800. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications Lowe's sent Tux a $600 credit memorandum toward the $3,600 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 I purchase. rk mode : This shows what is correct Answer is not complete. Debit Credit General Journal Ho Date 6,000 6,000 Aug 01 Merchandise inventory Accounts payable-Aron 4,200 4,200 2 Aug 05 Accounts receivable-Baird Sales 3,000 3,000 3 Aug 05 Cost of goods sold Merchandise inventory 5,000 5,000 4 Aug 08 Merchandise inventory Accounts payable-Waters 120 120 5 Aug 09 Delivery expense Cash > 1,000 1,000 6 Aug 10 Sales returns and allowances Accounts receivable Baird 500 7 Aug 10 Merchandise inventory Cost of goods sold 00 500 300 8 Aug 12 Accounts payable-Waters Merchandise inventory 300 430 9 Aug 14 Accounts payable-Aron Cash O 430 4,508 10 Aug 15 Cash Sales discounts Accounts receivable Baird 500 11 Aug 18 Accounts payable-Waters Merchandise inventory 508 12 3,600 Aug 19 Accounts receivable-Tux 3,600 Sales (20 pts) eck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indic Accounts receivable-Baird 500 11 Aug 18 Accounts payable-Waters Merchandise inventory 500 3,600 12 Aug 19 Accounts receivable-Tux Sales 3,600 1,800 13 Aug 19 Cost of goods sold Merchandise inventory 1,800 O 600 14 Aug 22 Sales returns and allowances Accounts receivable-- Tux 600 > 7,500 15 Aug 29 Cash Accounts receivable-Tux 7,50 6,000 16 Aug 30 Accounts payable-Aron Cash 6,000