Great Adventures Problem AP6-1 (GL)

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Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet wont damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $640 each.

Jul.		17		Purchased 71 watches for $10,650 ($150 per watch) on account.
Jul.		31		Sold 54 watches for $34,560 cash.
Aug.		12		Purchased 54 watches for $8,640 ($160 per watch) cash.
Aug.		22		Sold 44 watches for $28,160 on account.
Sep.		19		Paid for watches purchased on July 17.
Sep.		27		Receive cash of $16,896 for watches sold on account on August 22.
Oct.		27		Purchased 115 watches for $19,550 ($170 per watch) cash.
Nov.		20		Sold 104 watches for $66,560 cash.
Dec.		4		Purchased 114 watches for $20,520 ($180 per watch) on account.
Dec.		8		Sold 54 watches for $34,560 on account.

Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch

What are the journal entries?

Journal entry worksheet Record the closure of expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Journal entry worksheet Record the write-down of inventory to net realizable value. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Cost of Goods Sold Inventory Record entry Clear entry View general journal Journal entry worksheet 1 10 11 12 13 14 15 16 17 > Record the closure of revenue accounts. Rectangular Snip Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Sales Revenue 163,840 Record entry Clear entry View general journal