Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $23,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $34,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped fo.b. shipping point and freight charges of $580 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $19,200 was sold on account for $29.600. d. It was determined that inventory on hand at the end of October cost $37,360. 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.) Answer is not complete. No Date General Journal Debit Credit October 12 Inventory 34,000 % Accounts payable 34,000 X October 12 Inventory 580 Cash 580 October 31 Accounts payable 34,000 Interest expense Cash 1,020 32,980 % October 31 Accounts receivable 29,600 Sales revenue 29,600 October 31 Cost of goods sold 19,200 Inventory 19,200 6 October 31 No journal entry required 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.) Answer is not complete. No General Journal Credit Date October 12 Debit 34,000 > Purchases Accounts payable 34,000 October 12 580 Freight-in Cash 580 34,000 October 31 Accounts payable CashX 1,020 X 32,980 % October 31 29,600 Accounts receivable Sales revenue 29,600 5 October 31 19,200 X Cost of goods sold Purchases 19,200 X October 31 37,360 Inventory (ending) Purchases 37,360 X