Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $27,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $40,000 on October 12. Terms of the purchase were 1/10,n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $620 were paid in cash. b. On October 31 , Autumn paid for the inventory purchased on October 12. c. During October inventory 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. Problem 8-1 (Algo) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & \multicolumn{2}{|c|}{ General Journal } & Debit & Credit \\ \hline \multirow[t]{2}{*}{1} & October 12 & Inventory & 2 & 39,600 & \\ \hline & & Accounts payable & & & 39,600 \\ \hline \multirow[t]{2}{*}{2} & October 12 & Inventory & & 620 & \\ \hline & & Cash & & & 620 \\ \hline \multirow[t]{3}{*}{3} & October 31 & Accounts payable & & 39,600 & \\ \hline & & Interest expense & x & 400 & \\ \hline & & Cash & & & 40,000 \\ \hline \multirow[t]{2}{*}{4} & October 31 & Accounts receivable & & 30,400 & \\ \hline & & Sales revenue & & & 30,400 \\ \hline \multirow[t]{2}{*}{5} & October 31 & Cost of goods sold & & & \\ \hline & & Inventory & & & \\ \hline 6 & October 31 & No Transaction Reco & & & \\ \hline \end{tabular}