RWP6-1 (Algo) Great Adventures Continuing Case

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 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 $495 each.

July 17	Purchased 45 watches for $6,525 ($145 per watch) on account.
July 31	Sold 35 watches for $17,325 cash.
August 12	Purchased 35 watches for $5,425 ($155 per watch) cash.
August 22	Sold 25 watches for $12,375 on account.
September 19	Paid for watches purchased on July 17.
September 27	Receive cash of $18,000 for watches sold on account on August 22.
October 27	Purchased 75 watches for $12,375 ($165 per watch) cash.
November 20	Sold 85 watches for $42,075 cash.
December 4	Purchased 110 watches for $19,250 ($175 per watch) on account.
December 8	Sold 35 watches for $17,325 on account.

*Please explain the process of getting the answers*

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 $495 each. July 17 Purchased 45 watches for $6,525 ( $145 per watch) on account. July 31 Sold 35 watches for $17,325 cash. August 12 Purchased 35 watches for $5,425 ( $155 per watch) cash. August 22 Sold 25 watches for $12,375 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $18,000 for watches sold on account on August 22. 0ctober 27 Purchased 75 watches for $12,375 ( $165 per watch) cash. November 20 Sold 85 watches for $42,075 cash. December 4 Purchased 110 watches for $19,250 ( $175 per watch) on account. December 8 Sold 35 watches for $17,325 on account. Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. Complete this question by entering your answers in the tabs below. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. Prepare the gross profit section of a partial income statement for transactions related to MU watches