Required information [The following information applies to the questions displayed below) James Company began the month of October with inventory of $27,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $40,000 on October 12. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped fob shipping point and freight charges of $620 were paid in cash, b. On October 31, James paid for the merchandise purchased on October 12 c. During October merchandise costing $19.800 was sold on account for $30,400, d. It was determined that inventory on hand at the end of October cost $47420 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. Jarries 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.) Returi Required information October 12 Purchases Accounts payable 39,600 39.600 2 October 12 Freight-in Cash SIS 620 620 3 October 31 Accounts payable Interest expense Cash 39,000 00 4.000 4 October 31 Accounts receivable Sales revenue 30,400 30,400 5 October 31 Cost of goods sold Inventory (ending) 19,800 47.420 Die 3 90 Required information Interest expense Cash 4,000 4 October 31 Accounts receivable Sales revenue 30,400 30,400 5 October 31 19,800 47,420 Cost of goods sold Inventory (ending) Purchases Freight-in Inventory (beginning) 39,600 620 27,000 View transaction list Journal entry worksheet