James Company began the month of October with inventory of $22,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $32,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $570 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $19,050 was sold on account for $29,400. d. It was determined that inventory on hand at the end of October cost $35,370