60.1K

Verified Solution

Link Copied!

Help Save & Exit Submit Check my work epare journal entres to record the following mercnanaising transactions of Lowes, wnicn uses the perpetual inventory system ana = gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts wable-Aron. 1 Purchased merchandise from Aron Company for $6,000 under credit terms of 1/10, 1/30, POB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $4,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Waters Corporation for $5,000 under credit term of 1/10, 1/45, FOB shipping point, invoice dated August 8. 9 Paid $280 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 Love'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 $500 off the $5,000 of goods purchased. Lowe's debited accounts payable for $500. 14 At Aron's request, Lowe's paid $220 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. 19 Sold merchandise to Tux Co. for $3,600 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,800. 22 Tux requested a price reduction on the August 19 sale because the merchandisd did not meet specifications. Love's gave a price reduction (allowance) of $600 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. 30. Paid Aron Company the amount due from the August 1 purchase. 4 WPX 0 95 MacBook Pro Journal entry worksheet 1 2 4 5 16 ed Purchased merchandise from Aron Company for $6,000 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. ak Note: Enter debits before credits. Date General Journal Debit Credit Aug 01 Record entry Clear entry View general journal Journal entry worksheet 3 4 8 16 pped Sold merchandise to Baird Corp. for $4,200 under credit terms of 2/10, 1/60, FOB destination, Invoice dated August 5. Book Note: Enter debits before credits rint Date General Journal Debit Credit Aug 05 Record entry Clear entry View general joumal Prey 2 of 6 HE Next > 2 Journal entry worksheet 33 2 Journal entry worksheet 3 Journal entry worksheet Journal entry worksheet 1 2 3 5 8 16 Record the merchandise, cost $500, that was restored to inventory. Note: Enter debits before credits. Date General Journal Debit Credit Aug 10 Record entry Clear entry View general Journal Journal entry worksheet Journal entry worksheet Journal entry worksheet 5 6 7 8 9 10 16 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. Note: Enter debits before credits. Date General Journal Debit Credit Aug 15 Record entry Clear entry View general Journal 6 Journal entry worksheet 67 WWW 10 11 16 .. Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. Note: Enter debits before credits. Date General Journal Debit Credit Aug 18 View general Journal Clear entry Record entry Journal entry worksheet 1 C. 9 10 11 12 . 16 Sold merchandise to Tux Co. for $3,600 under credit terms of n/10, FOB shipping point, Invoice dated August 19. Note: Enter debits before credits. Date General Journal Debit Credit Aug 19 Record entry Clear entry View general Journal Journal entry worksheet 1 . 10 11 12 13 16 Record cost of merchandise sold, $1,800. Note: Enter debits before credits. Date General Journal Debit Credit Aug 19 Record entry Clear entry View general Journal Journal entry worksheet 1 9 10 11 12 13 14 16 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 $600 to Tux, and credited Tux's accounts receivable for that amount. Note: Enter debits before credits Date General Journal Debit Credit Aug 22 View general Journal Clear entry Record entry Journal entry worksheet Journal entry worksheet 1 EE. 9 10 11 12 13 14 15 1,8 Pald Aron Company the amount due from the August 1 purchase. Note: Enter debits before credits. Date General Journal Debit Credit Aug 30 Clear entry View general Journal Record entry

Answer & Explanation Solved by verified expert

See Answer