Canseco Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore

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Canseco Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2014, at an agreed price of $100,000. At December 31, 2014, the raw material had declined in price to $85,000.

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What entry would you make on December 31, 2014, to recognize these facts?

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Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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