Problem 4-2A (Static) Preparing journal entries for merchandising activities LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross mothod. August 1 Purchased nerchandise from Aron Company for $7,5e0 under credit terms of 1/10,n/30, FoB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $5,200 under credit teres of 2/10,n/6e, FoB destination, invoice dated August 5 . The merchandise had cost $4,000. August 8 Purchased merchandise fron Waters Corporation for $5,489 under credit terms of 1/10,n/45, FOB shipping point, invoice dated August 8 . August 9 Paid $125 cash for shipping charges related to the August 5 sale to Boird Corporation. August 10 Baird returned nerchandise from the August 5 sale that had cost Lowe's 5408 and was sold for $60e. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8 , Lowe's received a price reduction from Waters of $400 oft the $5,400, of goods purchased. Lowe's debited accounts payable for $400. August 14 At Aron's request, Love's paid \$2eo 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 anount due Waters Corporation for the August 8 purchase less the price allowance from August 12 . August 19 Sold nerchandise to Tux Company for $4, 8ee under credit terms of n/10, Fob shipping point, invoice dated August 19. The merchandise had cost \$2,4ee. August 22 Tux requested a price reduction on the August 19 sate because the merchandise did not meet specifications. Lowe's gave a price reduction (allowance) of $500 to Tux and credited Tux's accounts receivable for that August 29 Received Tux's cash payment for the anount due from the August 19 sale less the price allowance from August august 30 Paid Aron Conpany the anount due fron the August 1 purchase. Journal entry worksheet 34567816 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10,n/30, FOB destination, involce dated August 1. Notej Enear debits before credith