Question

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, FOB destination, invoice dated August 1.
		5		Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB 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, n/45, FOB 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 credit memorandum from Waters granting a price reduction of $400 off the $4,000 of goods purchased.
		14		At Aron’s request, Lowe’s paid $240 cash for freight charges on the August 1 purchase, reducing the amount owed 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 $3,000 under credit terms of n/10, FOB 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 sent Tux a $500 credit memorandum toward the $3,000 invoice to resolve the issue.
		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.

1- Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.

2- Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5.

3- Record cost of merchandise sold, $2,000.

4- Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.

5- Paid $240 cash for shipping charges related to the August 5 sale to Baird Corp.

6- Baird returned merchandise from the August 5 sale that was sold for $1,000.

7- Record the merchandise, cost $500, that was restored to inventory.

8- After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe’s received a credit memorandum from Waters granting a price reduction of $400 off the $4,000 of goods purchased.

9- At Aron’s request, Lowe’s paid $240 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron.

10- Received balance due from Baird Corp. for the August 5 sale less the return on August 10.

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

12- Sold merchandise to Tux Co. for $3,000 under credit terms of n/10, FOB shipping point, invoice dated August 19.

13- Record cost of merchandise sold, $1,500.

14- Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe’s sent Tux a $500 credit memorandum toward the $3,000 invoice to resolve the issue.

15- Received Tux’s cash payment for the amount due from the August 19 sale less the price allowance from August 22.

16- Paid Aron Company the amount due from the August 1 purchase.

please make sure it's correct 16 parts because i got wrong answer in firist question and this second time ( make it clear please )

	Date General Journal Debit Credit Aug 01

Answer 1

No	Date	General Journal	Debit	Credit
1	1-Aug	Merchandise Inventory	$5,000
		To Accounts Payable - Aron Company		$5,000
2	5-Aug	Cost of Goods Sold	$2,000
		To Merchandise Inventory		$2,000
3	5-Aug	Accounts Receivable - Baird Corp	$3,500
		To Sales Revenue		$3,500
4	8-Aug	Merchandise Inventory	$4,000
		To Accounts Payable - Waters Corporation		$4,000
5	9-Aug	Transportation out	$240
		To Cash		$240
6	10-Aug	Merchandise Inventory	$500
		To Cost of Goods Sold		$500
7	10-Aug	Sales Returns and Allowances	$1,000
		To Accounts Receivable - Baird Co		$1,000
8	12-Aug	Accounts Payable - Waters Corporation	$400
		To Merchandise Inventory		$400
9	14-Aug	Accounts Payable - Aron Company	$240
		To Cash		$240
10	15-Aug	Cash	$2,450
		Sales Discount	$50
		To Accounts Receivable - Baird Co		$2,500
11	18-Aug	Accounts Payable - Waters Corporation	3600
		To Merchandise Inventory		36
		To Cash		3564
12	19-Aug	Cost of Goods Sold	$1,500
		To Merchandise Inventory		$1,500
13		Accounts Receivable - Tux Co	$3,000
		To Sales Revenue		$3,000
14	22-Aug	Sales Returns and Allowances	$500
		To Accounts Receivable - Tux Co		$500
15	29-Aug	Cash	$2,500
		To Accounts Receivable - Tux Co		$2,500
16	30-Aug	Accounts Payable - Aron Company	$4,760
		To Cash		$4,760