trial balance

GL04-02 - Based on Problem 4-2A Lowe's Company LO P1, P2 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.) dag. 1 Purchaved merchandise from Aron Company for $7,500 under credit terns of 1/10, 1/30, POB dostination, invoice dated August 1. aug. 5 Sold merchandise to Baird Corp. for $5,200 under credit torna of 2/10, n/60, TOB destination, invodico datod August 5. The merchandise had cost $4,000 aug. 8 Purchased nerchandise from Matera Corporation for 55,409 under credit term of 1/10, 1/45, FOB shipping point, Lovolce dated August 0. 4.9 Paid $125 cand for shipping charges related to the August 5 sale to Dard Corp. day. 20 Baird returned merchandise from the August 5 sale that had cout Lowe's $400 and was sold for $600. The merchandise was restored to inventory Mag. 12 After negotiations with Water Corporation concerning problems with the purchases on August 8, Love's received a credit memorandum from Watera granting a price reduction ot 400 off the 95,400 ot goodo purchased. Day 14 At Aron's request. Love's paid $200 cash for freight charges on the August 1 purchase, reducing the amount ovod to hron. N. 15 Received balance due tcom Baird corp. for the August Ssale less the return on August 10. Nug. 10 paid the amount due Waters Corporation for the August purchas less the price allowance from agust 12. No. 19 Bold merchandise te Tax Co. tor $4.000 under credit ter of n/10, TOD shipping point, Invoice dated August 19 the mechandise had cost $2,400. 22 Tux requested price reduction on the August 19 malo because the merchandise did not noot specification, Love's x 5500 credit nomorandum toward the $4.000 Invoice to resolve the Lose. A 29 cod Tua cash payment for the amount due from the August 19 sale less the price slovance from August 22 10 Paid Aros Company the amount due to the at purchase