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Problem 8-1 Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] James Company began the month of October with inventory of $35,000. The following inventory transactions occurred during the month a. The company purchased merchandise on account for $52,000 on October 12, 2016. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f..b. shipping point and freight charges of $700 were paid in cash b. On October 31, James paid for the merchandise purchased on October 12 c. During October merchandise costing $21,000 was sold on account for $32,000 d. It was determined that inventory on hand at the end of October cost $66,180 Required 1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. (If no entry is required for a transaction/levent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 4 6 The company purchased merchandise on account for $52,000 on October 12, 2016. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases Note: Enter debits before credits Date General Journal Debit Credit October 12, 2016 Purchases 50,960 Accounts payable 50,960