Required information [The following information applies to the questions displayed below] Now that operations for outdoor clinics and TEAM events are running smoothly. Suzle 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 uatches for $20,00e 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 $9,060 for watches sold on account on August 22. October 27 Purchased 80 yatches for $13,600 (\$170 per watch) cash. November 20 Sold 90 watches for $45,000 cash. December 4 Purchased 180 watches for $18,600 ( $180 per watch) on account. December 8 Sold 49 watches for $20,00e 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 downioad 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 $100 per watch. 0. 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. 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.) Journal entry worksheet 2. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watc MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos Internet. The demand for the original MU watches is greatly reduced. As of December 31 , the estimated net realizable value of N 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 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. For what amount would MU inventory be reported in the December 31,2025 , balance sheet? 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 $100 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. Prepare an updated gross profit section of a partial income statement accounting for this additional information
