Great Adventures Problem AP6-1 (GL)

[The following information applies to the questions displayed below.]

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 $680 each.

Jul.		17		Purchased 77 watches for $11,550 ($150 per watch) on account.
Jul.		31		Sold 58 watches for $39,440 cash.
Aug.		12		Purchased 58 watches for $9,280 ($160 per watch) cash.
Aug.		22		Sold 48 watches for $32,640 on account.
Sep.		19		Paid for watches purchased on July 17.
Sep.		27		Receive cash of $19,584 for watches sold on account on August 22.
Oct.		27		Purchased 125 watches for $21,250 ($170 per watch) cash.
Nov.		20		Sold 108 watches for $73,440 cash.
Dec.		4		Purchased 118 watches for $21,240 ($180 per watch) on account.
Dec.		8		Sold 58 watches for $39,440 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.

record the closer of revenue accounts

Date	General Journal	Debit	Credit
Dec 31	Sales Revenue	184,960

.....

Record the closure of expense accounts

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31	Retained Earnings
	Supplies Expense
	Salaries Expense
	Bad Debt Expense
	Interest Expense
	Rent Expense
	Income Tax Expense
	Insurance Expense
	Depreciation Expense
	Cost of Goods Sold		52,720