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 Kainski 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. 2 "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" "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? 3 "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?" The trial balance for cookie creations as on December 31, 2018 is as follows: COOKIE CREATIONS Post-Closing Trial Balance December 31, 2018 Account Cash Accounts Receivable Supplies Prepaid Insurance Equipment Debit Credit $1,180 875 350 1,210 1.200 Accumulated Depreciation-Equipment $40 Accounts Payable 75 Salaries and Wages Payable 56 Unearned Service Revenue 300 Interest Payable 15 Notes Payable 2,000 Common Stock Retained Earnings 800 1.529 $4,815 $4,815 In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January