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Required information [The following information applies to the questions displayed below.) James Company began the month of OView transaction list Journal entry worksheet 2 3 4 5 6 The company purchased merchandise on account for $34,000 on October 1View transaction list Journal entry worksheet 2 3 4 5 6 The merchandise was shipped f.o.b. shipping point and freight chargesView transaction list Journal entry worksheet < 1 4 5 6 On October 31, James paid for the merchandise purchased on October 12Required information View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the sale of merchandise on account. NView transaction list Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Date GeneralRequired information View transaction list Journal entry worksheet < 1 2 3 4 5 Record any necessary adjusting entry when the

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Answer #1

Journal Entries:

Periodic Inventory System:
Date General Journal Debit Credit
Oct. 12 Purchases $34,000
   Accounts Payable $34,000
(To record the purchase of inventory on account)
Freight - in $580
   Cash $580
(To record the payment of freight charges by cash)
Oct. 31 Accounts Payable $34,000
   Cash $34,000
(To record the payment for the merchandise purchased on account)
Oct. 31 Accounts Receivable $29,600
   Sales Revenue $29,600
(To record the sales made on account)
Oct. 31 Cost of goods sold is not recorded at the time of sale under periodic inventory system.
Oct. 31 Cost of Goods Sold $19,200
Ending Inventory $37,360
Inventory Shrinkage ($23,000 + $34,000 + $580 - $19,200 - $37,360) $1,020
   Beginning Inventory $23,000
   Purchases $34,000
   Freight - in $580
(To record the adjusting entry for inventory)
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