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 inethod to record purchases. Note: Enter debits before credits. Date General Journal Debit Credit 39,600 October 12 Inventory Accounts payable 39,600 Record entry Clear entry View general journal Journal entry worksheet The merchandise was shipped f.o.b. shipping point and freight charges of $620 were paid in cash. Note: Enter debits before credits. General Journal Credit 620 October 12 Inventory Cash 620 Record entry Clear entry View general journal Journal entry worksheet On October 31, James paid for the merchandise purchased on October 12. Note: Enter debits before credits. Debit Credit Date General Journal October 31 Accounts payable Purchase discounts lost Cash r Record entry Clear entry View general journal Journal entry worksheet