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. 5 October 31 19,800 Cost of goods sold Inventory 47,420 X Record any necessary adjusting entry when the inventory on hand at the end of October cost $47,420. Note: Enter debits before credits. General Journal Debit Credit Date October 31