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D Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual...

Question:

D Prepare journal entries to record the following merchandising transactions of Lowes, which uses the perpetual inventory sy19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The mercha

D 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 $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 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. Check Aug. 9, Dr. Delivery Expense, $125 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $400 and was sold for $600. 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 $5,400 of goods purchased. Lowe's debited accounts payable for $400. 14 At Aron's request, Lowe's paid $200 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 less the price allowance from August 12. Aug. 18, Cr. Cash, $4,950 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.
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. 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 payment for the amount due from the August 19 sale less the price allowance from August 22. Aug. 29, Dr. Cash, $4,300 30 Paid Aron Company the amount due from the August 1 purchase.

Answers

Date Particulars Debit (in $) Credit (in $)
Aug 1 Merchandise Inventory 7500
Accounts Payable- Aron 7500
Aug 5 Accounts Receivble- Baird 5200
Sales 5200
Cost of goods sold 1200
Merchandise inventory 1200
Aug 8 Merchandise Inventory 5400
Accounts Payable- Waters 5400
Aug 9 Delivery Expense 125
Cash 125
Aug 10 Sales return 600
Accounts receivable-Baird 600
Merchandise Inventory 400
Cost of goods sold 400
Aug 12 Accounts Payable-Water 400
Purchase Discount 400
Aug 14 Accounts Payable-Aron 200
Cash 200
Aug 15 Cash 4600
Account Receivable-Baird 4600
Aug 18 Account Payable- Water 5400
Purchase discount 50
Cash 4950
Aug 19 Accounts Receivable-Tux 4800
Sales 4800
Cost of goods sold 2400
Merchandise Inventory 2400
Aug 22 Sales Discount 500
Accounts Receivable- Tux 500
Aug 29 Cash 4300
Accounts Receivable- Tux 4300
Aug 30 Accounts Payable- Aron 7300
Cash 7300
.

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