Problem 8-1 (Algo) Various inventory transactions; journal entries (LO8-1, 8-2, 8-3) [The following information applies to the questions displayed below.) James Company began the month of October with inventory of $23,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $34,000 on October 12. 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 $580 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $19,200 was sold on account for $29,600. d. It was determined that inventory on hand at the end of October cost $37,360. 2. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transacuons including the adjusting entry at the end of October to record cost of goods sold. James considers purchase discounts lost as part of interest expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. General Journal No Credit Date October 12 Debit 32,980 1 Inventory (beginning) Accounts payable 32,980 N October 12 580 Inventory (beginning) Cash 580 3 October 31 > Accounts payable Purchases 32,980 1,020 x Cash 34,000 4 October 31 29,600 Accounts receivable Sales revenue >> 29,600 5 October 31 19,200 Cost of goods sold Inventory (beginning) > 19,200 X 6 October 31 60 Accumulated depreciation Depreciation expense 60 X