Question

please help with these transactions :(

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 merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, POB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $3,500 under credit terns of 2/10, n/60, POB destination, invoice dated August 5. The merchandise had cost $2,000. 8 Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, 1/45, POB shipping point, invoice dated August 8. 9 Paid $240 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 $500 and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from waters of $400 off the $4,000 of goods purchased. Lowe's debited accounts payable for $400. 14 At Aron's request, Love's paid $300 cash for freight charges on the August 1 purchase, reducing the amount owed (accounts payable) to Aron. 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 lose the price allowance from August 12. 19 Sold merchandise to Tux Co. for $3,000 under credit terms of n/10, POB shipping point, invoice dated August 19. The merchandise had cost $1,500. 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 $500 to Tux, and credited Tux's accounts receivable for that amount. 29 Received Tux's cash paynent for the amount due from the August 19 sale less the price allowance from August 22. 30 Paid Aron Company the amount due from the August 1 purchase. View transaction list Journal entry worksheet 2 3 4 5 7 R 16 < Prev 5 of 6 !!! Next

Answer 1

Date	Account Titles	Debit	Credit
Aug. 1	Merchandise Inventory	5000
	Accounts Payable-Aron		5000
Aug. 5	Accounts Receivable-Baird	3500
	Sales Revenue		3500
Aug. 5	Cost of goods sold	2000
	Merchandise Inventory		2000
Aug. 8	Merchandise Inventory	4000
	Accounts Payable-Waters		4000
Aug. 9	Delivery expense	240
	Cash		240
Aug. 10	Sales Returns and Allowances	1,000
	Accounts Receivable-Baird		1,000
Aug. 10	Merchandise Inventory	500
	Cost of goods sold		500
Aug. 12	Accounts Payable-Waters	400
	Merchandise inventory		400
Aug. 14	Accounts Payable-Aron	300
	Cash		300
Aug. 15	Cash	2450
	sales discount (2500*2%)	50
	Accounts Receivable-Baird (3500-1,000)		2500
Aug. 18	Accounts Payable-Waters (4000-400)	3600
	Merchandise inventory		36
	Cash (3600-36)		3564
Aug. 19	Accounts Receivable-Tux	3000
	Sales Revenue		3000
Aug. 19	Cost of goods sold	1500
	Merchandise Inventory		1500
Aug. 22	Sales returns and allowances	500
	Accounts Receivable-Tux		500
Aug. 29	Cash	2500
	Accounts Receivable-Tux (3000-500)		2500
Aug. 30	Accounts Payable-Aron (5000-300)	4700
	Cash		4700