help The folwing informanion applies to the questions displayed below) Now that

Question

help The folwing informanion applies to the questions displayed below) Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another ares for business expansion. She noices that a few cinic perticipants wear multuse (Mup watches Beyond the normel timekeeping features of most watches, MU watches are able to report temperature, atinude, and barometric pressure. MU watches are waterproof, so moisture from knyaking. rer fshing, 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 clnic The following transactions relate to purchases and sdles of watches during the second half of 2019 All wanches are sold for $306 each ut17 Purchased 56 wnches for SB8 736 (3156 per watchj on account ul 31 Sold 46 watches for $14,076 cash Aug t2 Fochased 46 wonches for $7636 ($166 per watch) cash Aug 22 Sold 36 wnches for $11016 on account Sep Paid for watches ordered on July 17 Sep 27 Received ful Oct 27 Purchased 86 watches for $15136($16 per watch) cash Nov 20 Sold 96 watches for $29,376 cash Dec. 4 Purchased 112 waches for $20,832 (5196 per watch) cash Dec. 8 Sold 46 watches for $14,076 on account for watches sold on sccount on August 22 5 1000 points

Explanation / Answer

1-a.

1-b.

Working:

2-a.

Note: The write down of $6080 may be debited to a separate account or adjusted to the cost of goods sold as has been done above. The credit can also be given to a contra asset account such as inventory valuation allowance.

2-b. MU inventory in December 31, 2019 balance sheet: $14136 - $6080 = $8056

2-c.

Sales revenue (224 x $306) 68544 Cost of goods sold 38204 Ending inventory 14136

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