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 $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. 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.) View transaction list Journal entry worksheet The merchandise was shipped f.o.b. shipping point and freight charges of $690 were paid in cash