James Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month. a) The company purchased merchandise on account for $22,000 on October 12, 2016. Terms of the purchase were 2/10, n30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. b) On October 31, James paid for the merchandise pruchased on October 12 c) During October merchandise costing $18,000 was sold on account for $28,000 d) It was determined that inventory on hand at the end of October cost $19,060.

Required. 1. Assuming that James Company uses a period 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/event, select "No journal entry required" in the first account field).

2. Assuming that 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).