Problem 4-2A Preparing journal entries for merchandising activities-perpetual system LO P1, P2 Prepare joumal entries to record the following metchandising 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 Coepany for 35 , 000 under credit terms of 1/10, n/30, FoE descination, invoice 5 Sold nerchandise to Baird Corp. for $3,509 under credat terms of 2/10, n/60, FoB destination, invoice dated dated August 1 A Purchased werehandise fros Waters Corporation for $4, 0ee under credit teras of 1/10, n/45, Fo8 shipping August \$. The merchandise had cost $2, 000 point, invoice dated August 8 . 5. Paid $130 cash for shipping charges related to the Mugust 5 sale to baird Corp. 10 Balrd returned merchandise from the August 5 sale that had cost Lowe's 5590 and was sold for $1,000, The 12 After negotiations with waters Corporation concerning probles with the purchases Jo August b, Lone's merchandise was restored to inventery. reseived a price reduction fron Waters of $409 off the $4,600. 14 At Aron's request, Lome's paid $250 cash for freight charges on the August 1 purchase, reducing the abount payable for 3400 . ared (accounts payable) to Aron 15 Received balance due froe 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 Iess the grice allowance from August. 12. 19 Sold merchandise to Tux Co. for $3,000 under credit terms of n/10, Foa shapping point, invoice dated August 22 Tux requested a price reduction on the August 19 sale because the merchandise did not neet specifications. 19. The eerchandise had cost $1,509 Loee's gave a price reduction (allowance) of $50e to Tux, and credited Tux's accounts receivable for that. 29 Received Tux's cash payment for the amount due froe the August 19 sale less the price allowance from August. asount. 22. 30. Paid Aren Coegany the amount due froe the August 1 purchase