question 7

question 6

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not in 7 Problem 4-2A Preparing journal entries for merchandising activities--perpetual system LO P1, P2 3 Doints Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Mint it will help to identify each receivable and payable, for example, record the purchase on August 1 in Accounts Payable-Aron dupa 1 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, 1/30, tot destination, Invoice dated Aupust 1. S Sold merchandise to Baird Corp. for 54,900 under Credit terms of 7/10, 1/60, Fol destination, Invoice dated August 5. The merchandise had cost $3,000 * Purchased merchandise from Waters Corporation for 56,000 under credit terms of 1/10, 1/45, FOB shipping point, invoice dated August 9 Paid 5200 cash for shipping changes related to the pust 5 sale to Band Corp, 10 Baird returned merchandise from the August 5 sale that had cost Love 5500 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 3, Love's received a price reduction from waters of $600 off the 56,000 of goods purchased. Lowe's debited accounts payable for 5600. 14 At Aron's request, Lou's paid $400 cash for freight charges on the August 1 purchase, reducing the mount owed (accounts payable) to Aron 15 Received balance due from Bird Corp. for the August 5 sale less the return on August 10. 10 Paid the mount due Waters Corporation for the upust purchase less the price allowance from August 12 19 Sold merchandise to Tux Co. for 54,200 under credit teres of 1/10, FB shipping point, Invoice dated August 19. The merchandise had cost 52,100 22 Tux requested a price reduction on the August 19 Sale because the merchandise did not meet specifications. Lowe's Have a price reduction (allowance) of 5700 to Tux, and credited Tux's accounts receivable for that anount. 29 Received Tux's cash payment for the amount due from the August 19 sate less the price allowance from August 22 30 Paid Aron Company the amount due from the August 1 purchase Answer is complete but not entirely correct. Credit No 1 Date Aug 01 General Journal Merchandise inventory Accounts payable Aron Debit 7.000 7.000 G 2 Ain mundur Check my work mode : This shows what is correct or incorrect for the work you have completed 7 Answer is complete but not entirely correct. No Date Aug 01 1 General Joumal Merchandise inventory Accounts payable Aron 3 points Credit > Debit 7,000 7,000 2 Aug 05 Accounts receivable Baird Sales 4,900 4,900 3 Aug 05 Cost of goods sold Merchandise inventory 3,000 3,000 S 4 Aug 08 Merchandise inventory Accounts payable-Waters 6,000 6,000 5 Aug 09 Delivery expense Cash 200 200 6 Aug 10 Sales tetums and allowances Accounts receivable Baird > 1,000 1.000 7 Aug 10 Merchandise inventory Cost of goods sold 500 OS 500 8 Aug 12 Accounts payable Waters Merchandise inventory 600 . 600 9 Aug 14 Accounts payable Aron 400 Mc Graw Hill E 6.900 > 2 July 02 Accounts receivable-Creek Sales 950 950 3 July 02 Cost of goods sold Merchandise inventory 575 575 4 July 03 Merchandise inventory 110 Cash 110 on July 08 Cash Sales 2,600 2,600 . 6 July 08 Cost of goods sold Merchandise inventory 2200 2,200 S 7 July 09 Merchandise inventory Accounts payable --Leght 2,600 lo 2.000 > July 11 Accounts payable Light Merchandise inventory 000 O 600 9 July 12 Cash 931 Mc Graw HII