Chec 9 James Company began the month of October with inventory of $15,000. The f
ID: 2558118 • Letter: C
Question
Chec 9 James Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month 10 points a. The company purchased merchandise on account for $22,000 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 $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. eBook Required: 1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including Print 2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. References Complete this question by entering your answers in the tabs below Required 1 Required 2Explanation / Answer
Journal entries: S.no. Date Accounts title and explanations Debit Credit 1 12-Oct Purchases Dr. 21560 Accounts payable 21560 2 12-Oct Freight in expense Dr. 500 cash 500 3 31-Oct Accounts Payable Dr. 21560 Interest expense Dr. 440 Cash 22000 4 31-Oct Accounts receivable Dr. 28000 Sales revenue 28000 5 31-Oct Nno entry for Cost of Goods sold 6 31-Oct Inventory (ending) Dr. 19060 Cost of Goods sold Dr. 18000 Purchases 21560 Frieght In expense 500 Inventory (Beginning) 15000 Journal entries for Perpetual: S.no. Date Accounts title and explanations Debit Credit 1 12-Oct Inventory Dr. 21560 Accounts payable 21560 2 12-Oct Inventry Dr. 500 Cash 500 3 31-Oct Accounts payable Dr. 21560 Inventory Dr. 440 Cash Account 22000 4 31-Oct Accounts receivable Dr 28000 sales revenue 28000 5 31-Oct Cost of Goods sold Dr. 18000 Inventory 18000 6 31-Oct Inventory Shrinkage Dr. 440 Inventory 440