July $17$

July $31$

August $12$

August $22$

September $19$ Paid for watches purchased on July $17.$

September $27$ Receive cash of $$10,800$ for watches sold on account on August $22.$

october $27$ Purchased $83$ watches for $$14,359($ $$173$ per watch$)$ cash.

November $20$ Sold $93$ watches for $$46,779$ cash.

December $4$ Purchased $106$ watches for $$19,398($ $$183$ per watch$)$ on account.

December $8$ Sold $43$ watches for $$21,629$ on account.

$2.$ 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 $$103$ per watch.

a$.$ Record any necessary adjusting entry on December $31,2025,$ related to this information, assuming Suzie uses a FIFO perpetual inventory system to account for inventory.

b$.$ For what amount would MU inventory be reported in the December $31,2025,$ balance sheet?

c$.$ Prepare an updated gross profit section of a partial income statement accounting for this additional information.

Complete this question by entering your answers in the tabs below.

Prepare an updated gross profit section of a partial income statement accounting for this additional information.

$\backslash$table$[[$GREA$,$ORATED$],[$Partial Income Statement$],[$For the Year Ended December $31,2025],[,],[,],[,],[$Gross Profit,$]]$