Perpetual Inventory System

Retu Required information Problem 8-1 (Algo) Various inventory transactions, journal entries (L08-1, 8-2, 8-3) [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $34,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $50,500 on October 12. Terms of the purchase were 2/10 n/30. James uses the net method to record purchases. The merchandise was shipped fo.b. shipping point and freight charges of $690 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12 c. During October merchandise costing $20,850 was sold on account for $31,800. d. It was determined that inventory on hand at the end of October cost $63,330. Part 1 of 2 $50,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. ober 12. o record 2 The merchandise was shipped f.o.b. shipping point and freight charges of $690 were paid in cash. pints On October 31, James paid for the merchandise purchased on October 12. eBook redit Print Record the sale of merchandise on account. References 5 Record the cost of goods sold. 49,490 Record any necessary adjusting entry when the inventory on hand at the end of October cost $63,330