1.The company purchased inventory on account for $26,500 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases.

2.The inventory was shipped f.o.b. shipping point and freight charges of $530 were paid in cash.

3.On October 31, Autumn paid for the inventory purchased on October 12.

4.Record the sale of merchandise on account.

5.Record the cost of goods sold.

6.Record any necessary adjusting entry when the inventory on hand at the end of October cost $26,050.

Required information Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $18,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $26,500 on October 12 . Terms of the purchase were 2/10,n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $530 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $18,450 was sold on account for $28,600. d. It was determined that inventory on hand at the end of October cost $26,050. Problem 8-1 (Algo) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field