Submit Check my work ------ 3 wy-..- 68 ints Aug. Skipped eBook Print Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable: for example, record the purchase on August 1 in Accounts Payable-Aron) 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. Aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, 1/68, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Aug. 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, 1/45, FOB shipping point, invoice dated August 8. Aug. 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. Aug. 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $400 and was sold for $600. The merchandise was restored to inventory. Aug. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased. Aug. 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the anount owed to Aron. Aug. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Aug. 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. Aug. 19 Sold merchandise to Tux Co. for $4,800 under credit terns V10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400. Aug. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue. Aug. 29 Received Tux's cash paynent for the amount due from the August 19 sale less the price allowance from August 22. Aug. 30 Paid Aron Company the anount due from the August 1 purchase. References General Ledger Schedule of Receivables Income Statement General Journal Schedule of Payables Impact on Income Trial Balance Requirement