Check my work James Company began the month of October with inventory of $15,000

Question

Check my work James Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $22,000 on October 12, 2018. Terms of the purchase were 2/10, n/30. James 10 points uses the net method to record purchases. The merchandise was shipped fo.b. shipping point and freight charges of $500 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October, merchandise costing $18,000 was sold on account for $28,000. d. It was determined that inventory on hand at the end of October cost $19,060 Skipped eBookRequired: 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 Print Complete this question by entering your answers in the tabs below References

Explanation / Answer

Journal Entry under Periodic inventory Date Accounts Title and explanations Debit $ Credit $ a, Purchases Dr. 22000      Purchase Discount 440      Accounts receivable 21560 a. Frieght in Dr. 500      Cash 500 b. Accounts payable Dr/ 21560 Purchase discountt Dr. 440        Cash Aaccount 22000 c. Accounts receivable Dr. 28000        Sales revenue 28000 d. Cost of goods sold Dr. 37000       Purchases Account 22000       Inventory Account (begginning) 15000 d. Inventory Account 19060      Cost of Goods sold 19060 Journal entry under Perpetual Inventory Date Accounts Title and explanations Debit $ Credit $ a. Inventory Account Dr. 22060       Accounts payable 21560       Cash 500 b. Accounts payable Dr. 21560 Inventory Dr. 440         Cash Account 22000 c. Accounts receivable Dr. 28000      sales revenue 28000 Cost of Goods sold Dr. 18000      Inventory 18000 d. Inventory Dr. 60     Inventory Short/(Surplus) Account 60

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