GLO402 (Static) - 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.)August 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice datedAugust 1.August 5 Sold merchandise to Baird Corporation for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August5. The merchandise had cost $4,000.August 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/18, n/45, FOB shipping point, invoicedated August 8.August 9 Paid $125 cash for shipping charges related to the August 5 sale to Baird CorporationAugust 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $400 and was sold for $600. The merchandise wasrestored to inventory.August 12After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a creditmemorandum 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.redit terms of n/10, FOB shipping point, invoice dated August 19. TheAugust 19 Sold merchandise to Tux Company for $4,800 undermerchandise 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 sentTux 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.RequirementNo12345GeneralJournalJournalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable andaccounts payable will be updated based on your entries.Account Title6DateAugust 01August 05August 05August 08August 09GeneralLedgerAugust 10X Answer is not complete.Trial BalanceMerchandise inventoryAccounts payable - AronCost of goods soldAccounts receivable - BairdSalesMerchandise inventoryDelivery expenseCashMerchandise inventoryAccounts payable - WatersSchedule of Schedule ofReceivables PayablesSales returns and allowancesAccounts receivable - Raind››✔33333333IncomeStatement33Debit7,500✔5.200✔4,000 ✓5,400✔125✓Impact onIncome600✔Credit7,5005,200✔4.000✔5,400✔125✓600 ✓ 345678910111213141516August 05August 08August 09August 10August 10August 12August 14August 15August 18August 19August 19August 22August 29August 30SalesCost of goods soldMerchandise inventoryMerchandise inventoryAccounts payable - WatersDelivery expenseCashSales returns and allowancesAccounts receivable - BairdMerchandise inventoryCost of goods soldAccounts payable - WatersMerchandise inventoryAccounts payable - AronCashCashSales discountsAccounts receivable - BairdAccounts payable - WatersCashAccounts receivable - TuxSalesCost of goods soldMerchandise inventorySales returns and allowancesAccounts receivable - TuxCashAccounts receivable - TuxAccounts payable - AronCash333>>✔✔✔››✔33>>✔3330000✔00♥✔333333OD4,000✔5,400✔125>600✔400400✔>>200✔S5,080 x4,3005,000 ✓7.300>4,800✔2,400✔3500✔>S5,200✔4,000✔5,400125SS600✔O400✔>400✓200✔-92 X4,680 X34,950✔34,800✔2,400✔3500✔4,220 XO7,300✔

Journal Entries are the records of the transactions entered into by the organization during the…

GLO402 (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 Payable-Aron.) 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 ,800 invoice to resolve the issue. Tux a $500 credit memorandum toward the 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.