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 wont damage them. Suzie decides to have MU watches avallable 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 $499 each July 17 Purchased 49 watches for $7,301 (\$149 per watch) on account. July 31 Sold 39 watches for $19,461 cash. August 12 Purchased 39 watches for 56,201 (\$159 per watch) cash. August 22 Sold 29 watches for 514,471 on account. Septeaber 19 Paid for watches purchased on July 17. Septeterer 27 Receive cash of $15,6eo for watehes sold on account on August 22 . october 27 Purchased 79 watches for $13,351 (\$169 per watch) cash. hovember 20 Sold 89 watches for $44,411 cash. Decebber 4 Purchased 118 watches for $21,122 (\$179 per watch) on account. Decenber it Sold 39 watches for $19,461 on account. 2. Late in December, the next generation of multiuse (MU II) watches is relensed 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 necessory 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