Required information [The following information applies to the questions displayed below.) James Company began the month of October with inventory of $19.000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $28,000 on October 12. Terms of the purchase were 3/10,n/30 James uses the net method to record purchases. The merchandise was shipped f.ob. shipping point and freight charges of $540 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12 c. During October merchandise costing $18.600 was sold on account for $28,800. d. It was determined that inventory on hand at the end of October cost $28,100, 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.) 1 Purchases October 12 Accounts payable 2 October 12 Freight-in Cash 3 October 31 Accounts payable Interest expense Cash . October 31 Accounts receivable 4 Sales revenue 5 October 31 Cost of goods sold Inventory Purchases Freight-in * 7 of 18 Drov Next >