James Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month:

a.	The company purchased merchandise on account for $22,000 on October 12, 2016. 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 $500 were paid in cash.
b.	On October 31, James paid for the merchandise purchased on October 12.
c.	During October merchandise costing $18,000 was sold on account for $28,000.
d.	It was determined that inventory on hand at the end of October cost $19,060.

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.