James company began the month of october with inventory of $32,000. the following inventory transactions occurred during the month: a. the company purchased merchandise on account for $47,500 on october 12, 2016. terms of the purchase were 1/10, n/30. james uses the net method to record purchases. the merchandise was shipped f. o.b. shipping point and freight charges of $670 were paid in cash. b. on october 31, james paid for the merchandise purchased on october 12.c. during october merchandise costing $20,550 was sold on account for $31,400.d. it was determined that inventory on hand at the end of october cost $59,145.