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.

Journal Entry's-

Purchased 50 watches for $7,500 ($150 per watch) on account. Record the purchase of inventory on account.

Sold 40 watches for $20,000 cash. Record the sale of inventory for cash.

Sold 40 watches for $20,000 cash. Record the cost of inventory sold.

Purchased 40 watches for $6,400 ($160 per watch) cash. Record the purchase of inventory for cash.

Sold 30 watches for $15,000 on account. Record the sale.

Sold 30 watches for $15,000 on account. Record the cost of the sale.

Paid for watches purchased on July 17. Record the payment of cash.

Receive cash of $9,000 for watches sold on account on August 22. Record the receipt of cash for the sale.

Purchased 80 watches for $13,600 ($170 per watch) cash. Record the purchase of inventory for cash.

Sold 90 watches for $45,000 cash. Record the sale of inventory for cash.

Sold 90 watches for $45,000 cash. Record the cost of inventory sold.

Purchased 100 watches for $18,000 ($180 per watch) on account. Record the purchase of inventory on account.

Sold 40 watches for $20,000 on account. Record the sale of inventory on account.

Sold 40 watches for $20,000 on account. Record the cost of inventory sold.

Record any necessary adjusting entry for lower of cost and net realizable value.

Record the closing entry for revenue accounts.

Record the closing entry for expense accounts.

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 won't 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 2025 . All watches are sold for $500 each. July 17 Purchased 50 watches for $7,500 (\$150 per watch) on account. July 31 Sold 40 watches for $20,000 cash. August 12 Purchased 40 watches for $6,400 ( $160 per watch) cash. August 22 Sold 30 watches for $15,000 on account. september 19 Paid for watches purchased on July 17. September 27 Receive cash of $9,000 for watches sold on account on August 22 . October 27 Purchased 80 watches for $13,600 ( $170 per watch) cash. November 20 Sold 90 watches for $45,000 cash. December 4 Purchased 100 watches for $18,000 (\$180 per watch) on account. December 8 Sold 40 watches for $20,000 on account. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. repare a classified balance sheet as of December 31,2025 . Choose the appropriate accounts to complete the company's balance shee The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection