James Company began the month of October with inventory of $22,000. The following inventory transactions occurred during the month:

The company purchased merchandise on account for $32,500 on October 12, 2018. 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.

On October 31, James paid for the merchandise purchased on October 12.

During October, merchandise costing $19,050 was sold on account for $29,400.

It was determined that inventory on hand at the end of October cost $35,370.

Required: 1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. 2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.

Date Periodic 12-Oct The company purchased merchandise on account for $32,500 on October 12, 2018. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. 31-Oct The merchandise was shipped f.o.b. shipping point and freight charges of $570 were paid in cash. 31-Oct On October 31, James paid for the merchandise purchased on October 12 31-Oct Record the sale of merchandise on account. 31-Oct Record the cost of goods sold 31-Oct Record any necessary adjusting entry when the inventory on hand at the end of October cost $35,370. Perpetual 12-Oct The company purchased merchandise on account for $32,500 on October12, 2018. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. 31-Oct The merchandise was shipped f..b. shipping point and freight charges of $570were paid in cash. 31-Oct On October 31, James paid for the merchandise purchased on October 12 31-Oct Record the sale of merchandise on account. 31-0ct Record the cost of goods sold Record any necessary adjusting entry when the inventory on hand at the end of October cost $35,370