At the beginning of September, The Prancing Pony had a balance in inventory of $1,200. The...

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At the beginning of September, The Prancing Pony had a balance in inventory of $1,200. The following transactions occurred during the month of September. Required: Analyze and Record each transaction assuming that The Prancing Pony uses a perpetual inventory system. 1) Sept. 1- Purchased 20 kegs at $30 each from Buckland Enterprises, terms 2/10, n/30. 2) Sept. 3- Paid shipping/freight charges of $60 related to the September 1 purchase. 3) Sept. 6-We returned 5 of the Kegs to Buckland Enterprises because they were damaged 4) Sept. 9-Paid Buckland Enterprises in full. 5) Sept. 12- Sold 4 kegs to Sauron at a price of $60 each, terms 1/15, n/30. 6) Sept. 15 - Sauron returned 1 keg because it was the wrong type of drink. 7) Sept. 23 - Sauron paid its account in full. 8) Sept. 30- The Prancing Pony performed a physical inventory count and found that it had inventory on hand of $1,500. Record any necessary adjusting entries. At the beginning of September, The Prancing Pony had a balance in inventory of $1,200. The following transactions occurred during the month of September. Required: Analyze and Record each transaction assuming that The Prancing Pony uses a perpetual inventory system. 1) Sept. 1- Purchased 20 kegs at $30 each from Buckland Enterprises, terms 2/10, n/30. 2) Sept. 3- Paid shipping/freight charges of $60 related to the September 1 purchase. 3) Sept. 6-We returned 5 of the Kegs to Buckland Enterprises because they were damaged 4) Sept. 9-Paid Buckland Enterprises in full. 5) Sept. 12- Sold 4 kegs to Sauron at a price of $60 each, terms 1/15, n/30. 6) Sept. 15 - Sauron returned 1 keg because it was the wrong type of drink. 7) Sept. 23 - Sauron paid its account in full. 8) Sept. 30- The Prancing Pony performed a physical inventory count and found that it had inventory on hand of $1,500. Record any necessary adjusting entries.

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A perpetual inventory system is a method of tracking inventory levels in realtime In this sy... View the full answer