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Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3]

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[The following information applies to the questions displayed below.] James Company began the month of October with inventory of $16,000. The following inventory transactions occurred during the month:

1. The company purchased merchandise on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $510 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $18,150 was sold on account for $28,200.
4. It was determined that inventory on hand at the end of October cost $21,390.

Problem 8-1 (Algo) Part 1

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.)