Required information RWP6-1 (Algo) Great Adventures Continuing Case [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 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 $498 each. July 17 July 31 August 12 August 22 Purchased 48 watches for $7,104 ($148 per watch) on account. Sold 38 watches for $18,924 cash. Purchased 38 watches for $6,004 ($158 per watch) cash. Sold 28 watches for $13,944 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $16,200 for watches sold on account on August 22. October 27 November 20 December 4 December 8 Purchased 78 watches for $13,104 ($168 per watch) cash. Sold 88 watches for $43,824 cash. Purchased 116 watches for $20,648 ($178 per watch) on account.. Sold 38 watches for $18,924 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 $98 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Record any necessary adjusting entry on December 31, 2025, related to this information. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for inventory. Note: Enter debits before credits. Date General Journal Debit Credit 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 $98 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C For what amount would MU inventory be reported in the December 31, 2025, balance sheet? MU inventory Required A Required B Required C Prepare an updated gross profit section of a partial income statement accounting for this additional information. GREAT ADVENTURES, INCORPORATED Partial Income Statement For the Year Ended December 31, 2025 Gross Profit