Problem 4-2A Preparing journal entries for merchandising activitles-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.) Aug. 1 Purchased merchandise from Aron Company for $7, 000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. FOB destination, invoice dated August 5. The merchandise had cost $3,000. 1/10, n/45, FOB shipping point, invoice dated August 8 5 Sold merchandise to Baird Corp.for $4,900 under credit terms of 2/10, n/60, 8 Purchased merchandise from Waters Corporation for $6,000 under credit terms of 9 Paid $290 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 Lowe'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, Lowe's received a credit memorandum from Waters granting 14 At Aron's request, Lowe's paid $390 cash for freight charges on the Augu 15 Received balance due from Baird Corp. for the August 5 sale less the return on 18 Paid the amount due Waters Corporation for the August 8 purchase less the price 19 sold merchandise to Tux Co. for $4,200 under credit terms of n/10, FOB shipping 22 Tux requested a price reduction on the August 19 sale because the merchandise a price reduction of $600 off the $6,000 of goods purchased purchase, reducing the amount owed to Aron. August 10 allowance from August 12 point, invoice dated August 19. The merchandise had cost $2,100. did not meet specifications. Lowe's sent Tux a $700 credit menorandun tovard the $4,200 invoice to resolve the issue. 29 Received Tux's cash payment for the anount due from the August 19 sale less the price allowance from August 22 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list Journal entry worksheet 12 3 4 5 6 7 8 16 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destnation, invoice dated August 1 Note: Enter debits before credits. Record entry View general journal Clear entry