Need help with calculations Prepare journal entries to record the following merchandising transoctions of Lowe's, which uses the perpetual inventory system andthe gross method. Hint: It will help to identify each receivable and payable; for example, record the purchose on August 1 in AccountsPayable-Aron.Aug. 1 Purchased merchandise from Aron Company for $9,8ee under credit tems of 1/18, n/3e, FOB destination, invoice dated August1.5 Sold merchandise to Baird Corp. for $6,300 under credit terns of 2/10, n/6e, FOB destination, invaice dated August 5. Themerchandise had cost $4, eee.8 Purchased merchandise from Waters Corporation for $8,000 under credit terms of 1/10, n/45, FOB shipping point, invoicedated August 8.9 Paid $220 cash for shipping charges related to the August 5 sale to Baird Corp.10 Baird returned merchandise from the August 5 sale that had cost Lowe's $5ee and was sold for $1, e0e. The merchandise wasrestored to inventory.12 After negotiations with waters Corporation concerning problems with the purchases on August 8, Lowe's received a pricereduction from Waters of $8ee off the $8,000 of goods purchased. Lowe's debited accounts payable for $88e.14 At Aron's request, Lowe's paid $11e cash for freight charges on the August 1 purchase, reducing the amount owed (accountspayable) to Aron.15 Received balance due from Baird Corp. for the August 5 sale less the return on August 18.18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12.19 Sold merchandise to Tux Co. for $5,400 under credit terns of n/10, FOB shipping point, invoice dated August 19. Themerchandise 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 aprice reduction (allowance) of $9ee 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 Company the amount duc from the August 1 purchase.6Aug 10Sales returms and allowances1,000Accounts receivable Baird1,000Aug 10Merchandise inventory7500Cast of goods sald500Aug 12Accounts payable-Waters800Merchandise inventory800Aug 14Accounts payable-Aron110Cash11010Aug 15CashSales discountsAccounts receivable-Baird11Aug 18Accounts payable WatersCashMerchandise inventory13Aug 19Merchandise inventory2,700Cast of goods sold2,70014Aug 22Sales returms and allowances900Accounts receivable Tux90015Aug 29CashAccounts receivable-Tux16Aug 30Accounts payable-AronCash

Journal Entry: Journal entry is used to record the business transactions, either economic or…

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