GLO402 - Based on Problem 4-2A Lowe's Company LO P1, P2Prepare 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, n/30, FOB destination, invoicedated August 1.5 Sold merchandise to Baird Corp.August 5. The merchandise had cost $4,000.8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point,invoice dated August 8.Aug.Aug.for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice datedAug.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 hadcostLowe's $400 and wassold for $600. Themerchandise was restored to inventory.Aug. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received acredit 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 amount owedto 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 terms of n/10, 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.Aug. 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22.Aug. 30 Paid Aron Company the amount due from the August 1 purchase.Lowe's sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue.Impact onIncomeSchedule ofSchedule ofIncomeGeneralGeneralJournalRequirementTrial BalanceReceivablesPayablesStatementLedgerFor each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any.Input decreases to net income as negative values. Upon completion, compare the amount of income with the amountreported on the income statement.< Prev4 of 5Next >MacBoo Aug. 9) Paid $125 cash for shipping charges related to theAugust 5 sale to Baird Corp.Aug. 10) Baird returned merchandise from the August 5 salethat had sold for $600.Aug. 10) The cost of the merchandise returned by Lowe'swas $400. The merchandise was restored to inventory.Aug. 12) After negotiations with Waters Corporationconcerning problems with the purchases on August 8,Lowe's received a credit memorandum from Waters grantinga price reduction of $400 off the $5,400 of goods purchased.Aug. 14) At Aron's request, Lowe's paid $200 cash forfreight charges on the August 1 purchase, reducing theamount owed to Aron.Aug. 15) Received balance due from Baird Corp. for theAugust 5 sale less the return on August 10.Aug. 18) Paid the amount due Waters Corporation for theAugust 8 purchase less the price allowance from August 12.Aug. 19) Sold merchandise to Tux Co. for $4,800 undercredit terms of n/10, FOB shipping point, invoice datedAugust 19.Aug. 19) The cost of the merchandise sold merchandise toTux was $2,400.Aug. 22) Tux requested a price reduction on the August 19sale because the merchandise did not meet specifications.Lowe's sent Tux a $500 credit memorandum toward the$4,800 invoice to resolve the issue.Aug. 29) Received Tux's cash payment for the amount duefrom the August 19 sale less the price allowance from August22.Aug. 30) Paid Aron Company the amount due from theAugust 1 purchase.2$Total income< Prev4 of 5Next >

Name: GLO402 - Based on Problem 4-2A Lowe's Company LO P1, P2Prepare journa
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Description: GLO402 - Based on Problem 4-2A Lowe's Company LO P1, P2Prepare 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 e