8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] 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. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.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. Problem 8-1 (Algo) Part 1 Required: 1. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 The company purchased merchandise on account for $52,000 on October 12. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. Note: Enter debits before credits. Date October General Journal Debit Credit 12 > Journal entry worksheet 12 3 456 The merchandise was shipped f.o.b. shipping point and freight charges of $700 were paid in cash. Note: Enter debits before credits. Date October 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 56 On October 31, James paid for the merchandise purchased on October 12. Note: Enter debits before credits. Date October 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 56 Record the sale of merchandise on account. Note: Enter debits before credits. Date October 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the cost of goods sold. 5 6 Note: Enter debits before credits. General Journal Debit Credit Date October 31 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 Record any necessary adjusting entry when the inventory on hand at the end of October cost $66,180. Note: Enter debits before credits. Date October 31 General Journal Debit Credit Record entry Clear entry View general journal