GL0402 (Static) 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 PayableAron ) 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 August 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corporation August 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 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 Journalize the merchandising transactions The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries Journal entry worksheet Purchased merchandise from Aron Company for $7,500 under credit terms of 1 10, n 30, FOB destination, invoice dated August 1 Date Account Title Debit Credit August 01 Journal entry worksheet Sold merchandise to Baird Corporation for $5,200 under credit terms of 2 10, n 60, FOB destination, invoice dated August 5 Date Account Title Debit Credit August 05 Journal entry worksheet The merchandise sold to Baird had cost $4,000 Journal entry worksheet Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1 10, n 45, FOB shipping point, invoice dated August 8 Journal entry worksheet Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1 10, n 45, FOB shipping point, invoice dated August 8 Journal entry worksheet Paid $125 cash for shipping charges related to the August 5 sale to Baird Corporation Journal entry worksheet Baird returned merchandise from the August 5 sale that had sold for $600 Journal entry worksheet The cost of the merchandise returned by Lowe's was $400 The merchandise was restored to inventory Journal entry worksheet 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 Journal entry worksheet At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron Journal entry worksheet Received balance due from Baird Corporation for the August 5 sale less the return on August 10 Journal entry worksheet Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12 Journal entry worksheet Sold merchandise to Tux Company for $4,800 under credit terms of n 10, FOB shipping point, invoice dated August 19 Journal entry worksheet The cost of the merchandise sold merchandise to Tux was $2,400 Journal entry worksheet 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 Journal entry worksheet Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22 Journal entry worksheet Paid Aron Company the amount due from the August 1 purchase

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Question: GL0402 (Static) - 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

GL0402 (Static) - 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 PayableAron.)

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.
August 9	Paid $125 cash for shipping charges related to the August 5 sale to Baird Corporation
August 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.
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.

Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries.