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Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method.

August $1$ Purchased merchandise from Aron Company for $$5,000$ under credit terms of $\frac{1}{10},\frac{n}{30},$ F$0$B destination, invoice dated August $1.$

August $5$ Sold merchandise to Baird Corporation for $$3,500$ under credit terms of $\frac{2}{10},\frac{n}{60},$ F$0$B destination, invoice dated August $5.$ The merchandise had cost $$2,000.$

August $8$ Purchased merchandise from Waters Corporation for $$4,000$ under credit terms of $\frac{1}{10},\frac{n}{45},$ F$0$B shipping point, invoice dated August $8.$

August $9$ Paid $$210$ cash for shipping charges related to the August $5$ sale to Baird Corporation.

August $10$ 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.

August $12$ 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.$

August $14$ At Aron's request, Lowe's paid $$370$ cash for freight charges on the August $1$ purchase, reducing the amount owed $($accounts payable$)$ to Aron.

August $15$ Received balance due from Baird Corporation for the August $5$ sale less the return on August $10.$

August $18$ Paid the amount due Waters Corporation for the August $8$ purchase less the price allowance from August $12.$

August $19$ Sold merchandise to Tux Company for $$3,000$ under credit terms of $\frac{n}{10},$ F$0$B shipping point, invoice dated August $19.$ The merchandise had cost $$1,500.$

August $22$ 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.

August $29$ Received Tux's cash payment for the amount due from the August $19$ sale less the price allowance from August $22.$

August $30$ Paid Aron Company the amount due from the August $1$ purchase.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$....$

$16$

Purchased merchandise from Aron Company for $$5,000$ under credit terms of

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