GL0402 (Static) - Based on Problem 4-2A Lowe's Company LO P1, P2

Prepare journal entries to record the following merchandising transactions of Lowes, 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 Lowes $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, Lowes received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased.
August 14	At Arons request, Lowes 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. Lowes sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue.
August 29	Received Tuxs 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.

Prepare a multiple-step income statement