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 50 watches for $7,500 ($150 per watch) on account.Sold 40 watches for $20,000 cash.Purchased 40 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 27Purchased 80 watches for $13,600 ($170 per watch) cash.November 20 Sold 90 watches for $45,000 cash.December 4December 8Purchased 100 watches for $18,000 ($180 per watch) on account.Sold 40 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 CPrepare an updated gross profit section of a partial income statement accounting for this additional information.GREAT ADVENTURES, INCORPORATEDPartial Income StatementFor the Year Ended December 31, 2025Gross Profit

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

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 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 $500 each. July 17 July 31 August 12 August 22 Purchased 50 watches for $7,500 ($150 per watch) on account. Sold 40 watches for $20,000 cash. Purchased 40 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 27 November 20 December 4 December 8 Purchased 80 watches for $13,600 ($170 per watch) cash. Sold 90 watches for $45,000 cash. Purchased 100 watches for $18,000 ($180 per watch) on account. Sold 40 watches for $20,eee 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, 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. 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.