Required information [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 wotches avallable for sale at the start of each clinic. The following transactions relate to purchasos and sales of watches during the second half of 2025 . All watches are sold for $500 each. July-17 Purchased 50 vatehes fot $7,500 (\$150 per vateh) on account. July 31 Sold 40 wateben for $20,000 ean. Augast 12 Purchased 40 vatcbes for $6,400 ( $160 per vatch) cash. Auguat 22 Sold 30 vatehes for 515,000 on aeceunt. Septeaber 19 Paid for vatehee purchased on 241y. 17. Septerber 27 Recelve cash of 59,000 for watehes sold oe sucoust on Auqust 22 . october:27 harehased 80 watehes for $13,600 (\$170 per watch) cash. Noveeber 20 Sold 90 vatchee for 545,000 eash. Decenber 4 Purchased 100 watehes for $18,000 (\$180 per vatch) on account. December 8 sold 40 watches for $20,000 on acoosit: 2. Late in Decembec, the next generation of multiuse (MU II) watches is released. In addition to all of the feotures of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and hove 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. a. Record any necessary adjusting entry on December 31,2025 , related to this information. b. For what amount would MU imventory 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. Record any necessary adjusting entry on December 31,2025 , related to this information. (If no entry is requ select "No Journal Entry Required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. 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 Complete this question by entering your answers in the tabs below. For what amount would MU inventory be reported in the December 31,2025 , balance sheet? 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
