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. 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.

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.