James Company began the month of October with inventory of $27,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $40,000 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 $620 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $19,800 was sold on account for $30,400. d. It was determined that inventory on hand at the end of October cost $47,420. 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 The company purchased merchandise on account for $40,000 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 General Journal Debit Credit October 12 Purchases 23,030 Accounts payable 23,030 Record entry Clear entry View general journal