Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Hint It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron. Aug. 1 Purchased nerchandise fron Aron Company for $9,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 sold merchandise to Baird Corp. for $6,100 under credit teres of 2/10, n/e, FOs destination, invoice dated August s. The merchandise had cost $4,000. S Purchased merchandise from Maters Corporation for $8,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August S. 9 Paid $220 cash for shipping charges related to the August S sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Lowe's Ss00 and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with aters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from katers of Ss00 off the $8,000 of goods purchased. Lowe's debited accounts payable for ssoe. 14 At Aron's request, Lowe's paid s110 cash for freight charges on the August 1 purchase, reducing the anount owed (accounts payable) to Aron. 15 keceived balance due from Baird Corp. for the August s sale less the return on August 1e. 18 Paid the anount due Waters Corporation for the August s purchase less the price allowance from August 12. 19 Sold nerchandise to Tux Co. for $5,400 under credit teres of n/10, FOB Sshipping point, invoice dated August 19. The merchandise had cost $2,700. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's gave a price reduction (allowance) of $900 to Tux, and credited Tux's accounts receivable for that anount. 29 Received Tux's cash payment for the anount due from the August 19 sale less the price allowance from August 22. 30 Paid Aron Conpany the anount due from the August 1 purchase. 1,000 Sales retums and allowances Accounts receivable Baird Aug 10 1,000 Aug 10 Merchandise inventory 500 Cost of goods sold 500 Aug 12 Accounts payableWaters 800 Merchandise inventory 800 Aug 14 Accounts payable-Aron 110 Cash 110 Cash Sales discounts Accounts receivable-Baird 10 Aug 15 Accounts payableWaters Cash Merchandise inventory 11 Aug 18 13 Aug 19 Merchandise inventory 2.700 Cost of goods sold 2.700 14 Aug 22 Sales retums and allowances 900 Accounts receivable-Tux s00 Cash Accounts receivable-Tux 15 Aug 29 16 Aug 30 Accounts payable-Aron Cash