ReGLO402 - 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. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice datedAugust 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 8.9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp.Aug.Aug.Aug.Aug.Aug. 10 Baird returned merchandise from the August 5sale that had cost Lowe's $400 and was sold 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 10.18 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 onthe 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.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.O Answer is not complete.Schedule ofPayables ·GeneralGeneralSchedule ofIncomeImpact onRequirementTrial BalanceReceivablesStatementIncomeJournalLedger< Prev4 of 5Next >MacBook Air IncreaseImpact on income(decrease)to incomeAug. 1) Purchased merchandise from Aron Company for$7,500 under credit terms of 1/10, n/30, FOB destination,invoice dated August 1.Aug. 5) Sold merchandise to Baird Corp. for $5,200under credit terms of 2/10, n/60, FOB destination, invoicedated August 5.Aug. 5) The merchandise sold to Baird had cost $4,000.Aug. 8) Purchased merchandise from WatersCorporation for $5,400 under credit terms of 1/10, n/45,FOB shipping point, invoice dated August 8.Aug. 9) Paid $125 cash for shipping charges related tothe August 5 sale to Baird Corp.Aug. 10) Baird returned merchandise from the August 5sale that had sold for $600.Aug. 10) The cost of the merchandise returned byLowe's was $400. The merchandise was restored toinventory.Aug. 12) After negotiations with Waters Corporationconcerning problems with the purchases on August 8,Lowe's received a credit memorandum from Watersgranting a price reduction of $400 off the $5,400 ofgoods 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.< Prev4 of 5Next >

Impact on Income - Impact on Income is the statement includes all the expenses and income that made…

Increase (decrease) to income Impact on Income Aug. 1) Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5) Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Aug. 5) The merchandise sold to Baird had cost $4,000. Aug. 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. 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 had sold for $600. Aug. 10) The cost of the merchandise returned by Lowe's was $400. The merchandise was restored to inventory. Aug. 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. Aug. 14) At Aron's request, Lowe's paid $200 cash for eight amount owed to Aron. ges on the August 1 purchase, reducing the Aug. 15) Received balance due from Baird Corp. for the August 5 sale less the return on August 10.

Increase (decrease) to income Impact on Income Aug. 1) Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5) Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Aug. 5) The merchandise sold to Baird had cost $4,000. Aug. 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. 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 had sold for $600. Aug. 10) The cost of the merchandise returned by Lowe's was $400. The merchandise was restored to inventory. Aug. 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. Aug. 14) At Aron's request, Lowe's paid $200 cash for eight amount owed to Aron. ges on the August 1 purchase, reducing the Aug. 15) Received balance due from Baird Corp. for the August 5 sale less the return on August 10.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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