Question

. Late in December, the next generation of multiuse (MU II) watches is released. and have the ability to download and play songs and videos off the internet. The demand for the original MU watches watches is only $90 per watch addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) greatly reduced. As of December 31, the estimated net realizable value of MU no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record any necessary adjustment on December 31, 2019, related to this information View transaction list Journal entry worksheet 1 Record the adjustment for inventory. Note: Enter debits before credits. Date General Journal Debit Credit _ Dec. 31, 2019 Cost of goods sold Inventory View general journal Record entry Clear entry b. For what amount would MU inventory be reported in the December 31, 2019, balance sheet? MU inventory c. Prepare an updated gross profit section of a partial income statement accounting for this additional information. GREAT ADVENTURES, INC. Partial Income Statement For the Year Ended December 31, 2019 Gross profit

Answer 1

Here we will assume that the cost of watches were $ 170 |and the quantity was 70 (since the info. Was missing ) SO, we will take the lower of cost and market value i.e 90 Total of lowerr of cost or market 70 units 90 $ 6300 Part a COGS Inventory 70 units [170-90 ] ) 5600 5600 Part b $6300 Part c Sales, suppose Less-COGS 60000 amount will remian same will increase by $5600 suppose, orginal COGS was 32000 37600 22400 Gross profit