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.
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter3: Data Visualization
Section: Chapter Questions
Problem 23P: Aurora Radiological Services is a health care clinic that provides radiological imaging services...
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![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 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 27
November 20
December 4
December 8
Purchased 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, 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.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first
account field.)
View transaction list
Journal entry worksheet
<
Record the adjustment for inventory.
Note: Enter debits before credits.
Date
December 31,
General Journal
Debit
Credit
Cost of Goods Sold
2025
Inventory
Record entry
Clear entry
View general journal
Required A
Required B >
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb397e14d-b287-4abb-9ffb-928d2f065b30%2F6a7d2ed8-7dec-4f6f-ab54-c5c4f07d0510%2Fttlduag_processed.png&w=3840&q=75)
Transcribed Image Text: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 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 27
November 20
December 4
December 8
Purchased 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, 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.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first
account field.)
View transaction list
Journal entry worksheet
<
Record the adjustment for inventory.
Note: Enter debits before credits.
Date
December 31,
General Journal
Debit
Credit
Cost of Goods Sold
2025
Inventory
Record entry
Clear entry
View general journal
Required A
Required B >
>
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