James Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month:

1. The company purchased merchandise on account for $43,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $640 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $20,100 was sold on account for $30,800.
4. It was determined that inventory on hand at the end of October cost $51,250.