Question

Prepare journal entries to record the following merchandising transactions of Lowe's, which u gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 Payable-Aron.) in Accounts Aug. 1 Purchased merchandise from Aron Company for $6,888 under c redit terns of 1/18, n/se, FOB destination, invoice dated August 5 Sold merchandise to Baird Corp. for $4,280 under credit terns of 2/18, n/6e, F08 destination invoice dated August 5. The nerchandise had cost $3,e88 8 Purchased merchandise fram Waters Corporation for 35,000 under credit terns of 1/18, n/45, FOB shipping point, Invoice dated August 8 9 Paid $21e cash for shipping charges related to the August 5 sale to Baird Corp. 18 Baird returned merchandise from the August 5 sale that had cost Lowe's $588 and kas sold far $1,eee. The merchandise was restored to inventory 12 After negotiations with waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit nenorandum from Waters granting a price reduction of $580 off the $5,888 of goods purchased. 14 At Aron's request, Lowe's paid $498 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. 15 Received balance due fron Baird Corp. for the August 5 sale less the return on August 18. 18 Paid the anount due Waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold merchandise to Tux Co. for $3,608 under credit terms of n/19, FOB shipping point, invoice dated August 19. The merchandise had cost $1,880 22 Tux requested a price reduction on the August 19 sale hecause the merchandise did not meet specifications. Lowe's sent Tux a $688 credit memorandum toward the $3,688 invoice to resalve the issue, 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance fron August 22. 3e Paid Aron Company the amount due from the August 1 purchase View transaction list View journal entry worksheet General Journal Debit Credit No Date 6,000 Aug 01 Merchandise inventory 8,000

I need help preparing a journal entry for the merchandise transactions if Lowe's. Uses the perpetual inventory system and gross method.

Answer 1