James Company began the month of October with inventory of $33,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $49,000 on October 12, 2018. 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 $680 were paid in cash. On October 31, James paid for the merchandise purchased on October 12. During October, merchandise costing $20,700 was sold on account for $31,600. It was determined that inventory on hand at the end of October cost $61,000. Required: 1. 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. 2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.

James Company began the month of October with inventory of $33,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $49,000 on October 12, 2018. 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 $680 were paid in cash. On October 31, James paid for the merchandise purchased on October 12. During October, merchandise costing $20,700 was sold on account for $31,600. It was determined that inventory on hand at the end of October cost $61,000. Required: 1. 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. 2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.

Name: James Company began the month of October with inventory of $33,000. T
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Description: James Company began the month of October with inventory of $33,000. The following inventory transactions occurredduring the month:The company purchased merchandise on account for $49,000 on October 12, 2018. Terms of the purchase were 2/10,n/30. Jam

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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