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 Octobek 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 2 DE 2. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions 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.) View transaction list View journal entry worksheet General Journal Credit No 1 Date October 12 Debit 49,490 Inventory (beginning) Accounts payable 49,490 2 October 12 690 Inventory (beginning) Cash 690 Required information $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 f.o.b. shipping point and freight charges of $690 were paid in cash. On October 31, James paid for the merchandise purchased on October 12. 4 Record the sale of merchandise on account. 5 Record the cost of goods sold. 6 Record any necessary adjusting entry when the inventory on hand at the end of October cost $63,330