Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. Natalie asks you the following questions. 1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" 2. 3. "I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?" Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. Natalie asks you the following questions. 1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" 2. 3. "I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One
opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive
distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for
$1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily
identified.
Natalie asks you the following questions.
1.
"Would you consider these mixers to be inventory or should they be classified as supplies or equipment?"
2.
3.
"I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for
inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to
sell?"
"How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"
Transcribed Image Text:Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. Natalie asks you the following questions. 1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" 2. 3. "I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"
Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One
opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive
distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for
$1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily
identified.
Natalie asks you the following questions.
1.
"Would you consider these mixers to be inventory or should they be classified as supplies or equipment?"
2.
3.
"I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for
inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to
sell?"
"How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"
Transcribed Image Text:Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. Natalie asks you the following questions. 1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" 2. 3. "I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"
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