Updated Scenario: Many customers have been asking for more hypoallergenic products, so in September you start carrying a line of hypoallergenic shampoos on a trial basis. The following information relates to the purchase and sales of the shampoo: You use the perpetual inventory method. You are uncertain as to which valuation method to useFIFO, LIFO, or weighted average, so you calculate inventory using all three and then decide which one you would like to choose.

Data: The following events occur in September, 2018:

September 1: Paid dividends to self in amount of $10,000.

September 5: Pay employee for period ending 8/31.

September 7: Purchase merchandise for resale. See Inventory Valuation tab for details.

September 8: Receive payments from customers toward accounts receivable in amount of $4,000.

September 10: Pay August telephone bill.

September 11: Purchase baking supplies in amount of $7,000 from vendor on account.

September 13: Paid on supplies vendor account in amount of $5,000.

September 15: Accrue employee wages for period of September 1 through September 15.

September 15: Pay rent on bakery space: $1,500.

8 September 15: Record merchandise sales transaction. See Inventory Valuation tab for details.

September 15: Record impact of sales transaction on COGS and the inventory asset. See Inventory Valuation tab for details. September 20: Pay employee for period ending 9/15.

September 20: Purchase merchandise inventory for resale to customers. See Inventory Valuation tab for details.

September 24: Record sales of merchandise to customers. See Inventory Valuation tab for details.

September 24: Record impact of sales transaction on COGS and the inventory asset. See Inventory Valuation tab for details. September 30: Purchase merchandise inventory for resale to customers. See Inventory Valuation tab for details. September 30: Accrue employee wages for period of September 16th through September 30th September 30: Total September bakery sales are $20,000. $6,000 of these sales are on accounts receivable.