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 $503 each. July 17 Purchased 53 watches for $8,109 ( $153 per watch) on account. July 31 Sold 43 watches for $21,629 cash. August 12 Purchased 43 watches for $7,009 (\$163 per watch) cash. August 22 Sold 33 watches for $16,599 on account. 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 Intemet. 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. 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. Journal entry worksheet Note: Enter debits before credits. For what amount would MU inventory be reported in the Prepare an updated gross profit section of a partial income stater