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 2019. All watches are sold for $291 each.

Jul. 17 Purchased 41 watches for $5,781 ($141 per watch) on account. Jul. 31 Sold 31 watches for $9,021 cash. Aug. 12 Purchased 31 watches for $4,681 ($151 per watch) cash. Aug. 22 Sold 21 watches for $6,111 on account. Sep. 19 Paid for watches ordered on July 17. Sep. 27 Received full payment for watches sold on account on August 22. Oct. 27 Purchased 71 watches for $11,431 ($161 per watch) cash. Nov. 20 Sold 81 watches for $23,571 cash. Dec. 4 Purchased 102 watches for $17,442 ($171 per watch) cash. Dec. 8 Sold 31 watches for $9,021 on account.

1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2019, assuming Suzie uses FIFO to account for inventory.

1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.

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 $91 per watch.

a. Record any necessary adjustment on December 31, 2019, related to this information

b. For what amount would MU inventory be reported in the December 31, 2019, balance sheet?

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

Now that operations for outdoor cinicsand TEAM events are running smoothly, Suzie thinks of another area for business expansion n. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches,MU report temperatur re, altitude, and barametric pressure. MU watches are waterproof, so moisture fram kayaking, rain, fishing, or even diving up to 100 feet wan't damage them. Suzie decides to have MU watches available for sale at the start of each dinic. The following transactions relate to purchases and sales at watches during the second half of 2019. Al watches are sold for $291 each. Jul. 17 41 watches for $5,781 (S141 per watch) on account. Jul. 31 Sold 31 watches for $9,021 cash. Aug. 12 31 watches for $4,6a1 ($151 per watch) cash. Aug. 22 Sold 21 watches for $6,111 on account. Sep. 19 Paid for watches ardered on July 17 Sep. 27 Received full payment for watches sold on account an August 22 Oct 27 Purchased71 watches for S11 431 ($161 per watch) cash. Nov. 20 Sold 81 watches for $23,571 cash. urchased 102 watches for $17,442 ($171 per watch) cash. Dec. 4 P Dec. 8 Sold 3 watches for S9,021 on account. Required: 1 a. Calculate sales revenue, cost of goods sold and ending mentory as of 31, 2019, assuming Suzie uses FIFO to account for inventory Cost of goods sold 1 b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. 2. Late in December, the next generation of multiuse (MU I watches is released. In addition to audthe features af the MU watch, the MU ll 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 ariginal MU watches is greatly reduced. As of 31, the estimated net realizable value of MU watches is only $91 per watch. a. Record any necessary adjustment December 31, 2019, related to this information. Record the adjustment for inventory. Date General Joumal Debit Credit Dec. 31, 2019 Enter debits before credits For what amount would MU inventory be reported in the December 31, 2019, balance sheet? c, Prepare an updated gross pront section of a partial income statement accounting for this additional information Partial Income Statement the Year Ended December Gross profit