Part 3 Required information Problem 8-1 (Algo) Various inventory transactions, journal entries (LO8-1,8-2, 8-3] me following information applies to the questions displayed below) 16 James Company began the month of October with inventory of $25.000. The following inventory transactions occurred during the month a. The company purchased merchandise on account for $37000 on October 12. Terms of the purchase were 2/10, 30, James uses the net method to record purchases. The merchandise was shipped to be shipping point and freight charges of $600 were paid in cash b. On October 31, James paid for the merchandise purchased on October 12 c. During October merchandise costing $19,500 was sold on account for $30,000 d. It was determined that inventory on hand at the end of October cost $42,360 Problem 8-1 (Algo) Part 2 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 of no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transion View journal entry worksheet No Date General Journal Credit 2 1 October 12 Purchase Accounts payable Debit 36.260 36.260 2 2 October 12 Freight Cash 800 enn