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 businessexpansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping featuresof most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches arewaterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides tohave MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales ofwatches during the second half of 2025. All watches are sold for $500 each.July 17July 31August 12August 22Purchased 58 watches for $7,500 ($150 per watch) on account.Sold 40 watches for $20,000 cash.Purchased 48 watches for $6,400 ($160 per watch) cash.Sold 30 watches for $15,000 on account.September 19 Paid for watches purchased on July 17.September 27 Receive cash of $9,000 for watches sold on account on August 22.October 27November 20December 4December 8Purchased 80 watches for $13,600 ($170 per watch) cash.Sold 98 watches for $45,000 cash.Purchased 100 watches for $18,000 ($180 per watch) on account.Sold 48 watches for $20,000 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, theMU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off theInternet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MUwatches is only $100 per watch.a. Record any necessary adjusting entry on December 31, 2025, related to this information, assuming Suzie uses a FIFO perpetualInventory system to account for inventory.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.Required A Required B Required CRecord any necessary adjusting entry on December 31, 2025, related to this information, assuming Suzie uses a FIFO perpetualinventory system to account for inventory. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the firstaccount field.)View transaction listJournal entry worksheet<Record the adjustment for inventory.Note: Enter debits before credits.DateDecember 31,General JournalDebitCreditCost of Goods Sold2025InventoryRecord entryClear entryView general journalRequired ARequired B >>

Perpetual FIFO:First In First Out is an inventory valuation method that assumes the first goods…

a. Record any necessary adjusting entry on December 31, 2025, related to this information, assuming Suzie uses a FIFO perpetual Inventory system to account for inventory. 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.

a. Record any necessary adjusting entry on December 31, 2025, related to this information, assuming Suzie uses a FIFO perpetual Inventory system to account for inventory. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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