Required information 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 $35,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $52,000 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 $700 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $21,000 was sold on account for $32,000. d. It was determined that inventory on hand at the end of October cost $66,180. Problem 8-1 (Algo) Part 1 Required: 1. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date 1 October 12 Purchases Accounts payable 2 October 12 Freight-in Cash Answer is not complete. General Journal Debit Credit 51,480 51,480 700 700 3 October 31 Accounts payable 51,480 Purchase discounts lost Cash 520 52,000 4 October 31 Accounts receivable Sales revenue 5 October 31 No journal entry required 32,000 32,000 6 October 31 Cost of goods sold 21,520 X Inventory 66,180 x Purchases 51,480 x Freight-in Purchase discounts lost Inventory 700 x 520 x 35,000 x