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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

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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 1.0.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. 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. @ 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

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