Prepare journal entries to record the following merchandising transactions of Loweâs
Recording Journal Entries for Merchandising Transactions of Loweâs
August 1: Account Payable - Aron $7,500
August 1: Inventory $7,500
August 5: Account Receivable - Baird Corp. $5,200
August 5: Sales $5,200
August 8: Inventory $5,400
August 8: Account Payable - Waters Corporation $5,400
August 9: Shipping Charges $125
August 9: Cash $125
August 10: Sales Returns and Allowances $400
August 10: Cost of Goods Sold $400
August 12: Accounts Payable - Waters Corporation $400
August 12: Inventory $400
August 14: Freight Expense $200
August 14: Cash $200
August 15: Cash $5,075 (5,200-125)
August 15: Account Receivable - Baird Corp. $125
August 18: Account Payable - Waters Corporation $5,000 (5,400-400)
August 18: Cash $5,000
August 19: Account Receivable - Tux Co. $4,800
August 19: Sales $4,800
August 22: Accounts Receivable - Tux Co. $500
August 22: Sales Returns and Allowances $500
August 29: Cash $4,300 (4,800 - 500)
August 29: Accounts Receivable - Tux Co. $4,300