Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system.August 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoicedated August 1.August 5 Sold merchandise to Baird Corporation for $5,200 under credit terms of 2/10, n/60, FOB destination, invoicedated August 5. The merchandise had cost $4,000.August 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shippingpoint, invoice dated August 8.Paid $125 cash for shipping charges related to the August 5 sale to Baird CorporationBaird returned merchandise from the August 5 sale that had cost Lowe's $400 and was sold for $600. Themerchandise was restored to inventory.IAugust 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe'sreceived a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goodspurchased.August 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amountowed to Aron.August 9August 10August 15 Received balance due from Baird Corporation for the August 5 sale less the return on August 10.August 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12.August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, FOB shipping point, invoice datedAugust 19. The merchandise had cost $2,400.August 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 $4,800 invoice to resolve the issue.August 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August22.August 30 Paid Aron Company the amount due from the August 1 purchase.RequirementGeneralJournalAccounts payable - AronAccounts payable - BairdAccounts payable - TuxAccounts payable - WatersGeneralLedgerLowe's CompanySchedule of Accounts PayableTotal accounts payableTrial Balance$< Schedule of ReceivablesSchedule ofReceivables000000Schedule ofPayablesIncomeStatementDates: July 01Income Statement >Impact onIncometo: August 01

Name: Prepare journal entries to record the following merchandising transac
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Description: Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system.August 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoicedat

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Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. August 1 Purchased merchandise from Aron Company for $7,500 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 terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. August 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Paid $125 cash for shipping charges related to the August 5 sale to Baird Corporation 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. I August 9 August 10 August 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. August 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed 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 amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Tux Company for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400. August 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. August 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Aron Company the amount due from the August 1 purchase. Requirement General Journal Accounts payable - Aron Accounts payable - Baird Accounts payable - Tux Accounts payable - Waters General Ledger Lowe's Company Schedule of Accounts Payable Total accounts payable Trial Balance $ $ < Schedule of Receivables Schedule of Receivables 0 0 0 0 0 0 Schedule of Payables Income Statement Dates: July 01 Income Statement > Impact on Income to: August 01