inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
Please help with all answers.....part a part b and part c
![Required information
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 $501 each.
July 17
July 31
August 12
August 22
Sold 31 watches for $15,531 on account.
September 19 Paid for watches purchased on July 17.
September 27 Receive cash of $9,600 for watches sold on account on August 22.
October 27
Purchased 81 watches for $13,851 ($171 per watch) cash.
Sold 91 watches for $45,591 cash.
November 20
December 4 Purchased 102 watches for $18,462 ($181 per watch) on account.
December 8 Sold 41 watches for $20,541 on account.
RWP6-1 (Algo) Great Adventures onti
Purchased 51 watches for $7,701 ($151 per watch) on account.
Sold 41 watches for $20,541 cash.
Purchased 41 watches for $6,601 ($161 per watch) cash.
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 $101 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.
Required A
Complete this question by entering your answers in the tabs below.
View transaction list
No
Required B Required C
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.)
1
Case Part 2
View journal entry worksheet
Date
December 31,
2025
Cost of Goods Sold
Inventory
General Journal
< Required A
Required B
>
Debit
Credit
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e87e191-273b-4430-9665-0115d53e354e%2F3d8452d2-b0b1-46d4-91b4-8c0776980574%2F88l95qk_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
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 $501 each.
July 17
July 31
August 12
August 22
Sold 31 watches for $15,531 on account.
September 19 Paid for watches purchased on July 17.
September 27 Receive cash of $9,600 for watches sold on account on August 22.
October 27
Purchased 81 watches for $13,851 ($171 per watch) cash.
Sold 91 watches for $45,591 cash.
November 20
December 4 Purchased 102 watches for $18,462 ($181 per watch) on account.
December 8 Sold 41 watches for $20,541 on account.
RWP6-1 (Algo) Great Adventures onti
Purchased 51 watches for $7,701 ($151 per watch) on account.
Sold 41 watches for $20,541 cash.
Purchased 41 watches for $6,601 ($161 per watch) cash.
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 $101 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.
Required A
Complete this question by entering your answers in the tabs below.
View transaction list
No
Required B Required C
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.)
1
Case Part 2
View journal entry worksheet
Date
December 31,
2025
Cost of Goods Sold
Inventory
General Journal
< Required A
Required B
>
Debit
Credit
X
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