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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

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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 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 2022. All watches are sold for $499 each. Jul. 17 Purchased 49 watches for $7,301 (5149 per watch) on account. Jul. 31 Sold 39 watches for $19,461 cash. Aug. 12 Purchased 39 watches for $6,201 ($159 per watch) cash. Aug. 22 Sold 29 watches for $14,471 on Account Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $15.600 for watches sold on account on August 22. Oct. 27 Purchased 79 watehes for $13,351 ($169 per watch) cash. Nov. 20 Sold 89 watches for $44,411 canh. Dec. 4 Purchased 118 watches for $21,122 (6179 per watch) on account. Dee. Sold 39 watches for $19, 461 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 $99 per watch. a. Record any necessary adjustment on December 31, 2022 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. Debit Credit Date Dec 31, 2022 General Journal ALANLAMALARLA LA LA Record entry Clear entry View general Journal b. For what amount would MU inventory be reported in the December 31, 2022, balance sheet? MU Inventory c. Prepare an updated gross profit section of a partial income statement accounting for this additional information GREAT ADVENTURES, INC. Partial Income Statement For the Year Ended December 31, 2022

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