James Company began the month of October with inventory of $17,000 The following inventory transactions occurred during the month a The company purchased merchandise on account for $25,000 on October 12, 2013 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 $520 were paid in cash b On October 18 the company returned merchandise costing $3,200 The return reduced the amount owed to the supplier The merchandise returned came from beginning inventory, not from the October 12 purchase c On October 31, James paid for the merchandise purchased on October 12 d During October merchandise costing $18,300 was sold on account for $28,400 e It was determined that inventory on hand at the end of October cost $20,270 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 (If no entry is required for a particular transaction, select No journal entry required in the first account field ) 2 Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions (If no entry is required for a particular transaction, select No journal entry required in the first account field )

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Posted on Aug 06, 2024

James Company began the month of October with inventory of $17,000. The following inventory transactions occurred during the month:

a.	The company purchased merchandise on account for $25,000 on October 12, 2013. 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 $520 were paid in cash.
b.	On October 18 the company returned merchandise costing $3,200. The return reduced the amount owed to the supplier. The merchandise returned came from beginning inventory, not from the October 12 purchase.
c.	On October 31, James paid for the merchandise purchased on October 12.
d.	During October merchandise costing $18,300 was sold on account for $28,400.
e.	It was determined that inventory on hand at the end of October cost $20,270.

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. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

2.	Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)