James Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month a. The company purchased merchandise on account for $46,000 on October 12. Terms of the purchase were 2/16, n/30. James uses the net method to record purchases. The merchandise was shipped f.ob. shipping point and freight charges of $660 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $20,400 was sold on account for $31,200. d. It was determined that inventory on hand at the end of October cost $56,340. 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.)