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. Suzle 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 $500 each. Jul Purchased 50 watches for $7,500 ($150 per watch) on account. Jul Sold 40 watches for $20,000 cash. Aug Purchased 40 watches for $6,400 ($160 per watch) cash. Aug Sold 30 watches for $15,000 on account. Sep. Paid for watches purchased on July 17. Sep. 27 Receive cash of $9,000 for watches sold on account on August 22 Oct. 27 Purchased 80 watches for $13,600 ($170 per watch) cash. Nov. Sold 90 watches for $45,000 cash. Dec Purchased 100 watches for $18,000 ($180 per watch) on account. Dec. 8 Sold 40 watches for $20,000 on account. Late in December, the next generation of multi-use (MU II) watches is released. In addition to all of the features of the MU watch, the MU I watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the 17 31 12 22 19 20 4
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. Suzle 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 $500 each. Jul Purchased 50 watches for $7,500 ($150 per watch) on account. Jul Sold 40 watches for $20,000 cash. Aug Purchased 40 watches for $6,400 ($160 per watch) cash. Aug Sold 30 watches for $15,000 on account. Sep. Paid for watches purchased on July 17. Sep. 27 Receive cash of $9,000 for watches sold on account on August 22 Oct. 27 Purchased 80 watches for $13,600 ($170 per watch) cash. Nov. Sold 90 watches for $45,000 cash. Dec Purchased 100 watches for $18,000 ($180 per watch) on account. Dec. 8 Sold 40 watches for $20,000 on account. Late in December, the next generation of multi-use (MU II) watches is released. In addition to all of the features of the MU watch, the MU I watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the 17 31 12 22 19 20 4
Chapter3: Internal Control Issues
Section3.2: Howard Street Jewelers, Inc.
Problem 3Q
Related questions
Question
DO NOT GIVE SOLUTION IN IMAGE
Transcribed Image Text: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. Suzle 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 $500 each.
Jul.
17 Purchased 50 watches for $7,500 (S150 per watch) on account.
Jul.
Aug.
Aug.
Sep.
Sold 40 watches for $20,000 cash.
Purchased 40 watches for $6,400 (S160 per watch) cash.
Sold 30 watches for $15,000 on account.
Paid for watches purchased on July 17.
Receive cash of $9,000 for watches sold on account on August 22.
Purchased 80 watches for $13,600 ($170 per watch) cash.
Nov. 20
Sold 90 watches for $45,000 cash.
Dec. 4
Purchased 100 watches for $18,000 ($180 per watch) on account.
Dec. 8
Sold 40 watches for $20,000 on account.
Late in December, the next generation of multi-use (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 $100 per watch.
1. Record each of the transactions listed above in the 'General Journal" tab, assuming Suzie uses FIFO to account for inventory. On July 31, Aug 22, Nov 20, and Dec 8 record the sale on inventory as well as cost of inventory sold (two entries).
31
12
22
19
Sep.
Oct. 27
27
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you