During the current fiscal year, Jeremiah Corp. signed a long-term non-cancellable purchase commitment with its primary...

Transcribed Image Text:

During the current fiscal year, Jeremiah Corp. signed a long-term non-cancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $2,580,000 of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $1,975,000. What is the journal entry at the end of the current fiscal year? During the current fiscal year, Jeremiah Corp. signed a long-term non-cancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $2,580,000 of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $1,975,000. What is the journal entry at the end of the current fiscal year?

Answer rating: 100% (QA)

Answer To record the loss on the purchase commitment the journal entry at the end of the curre... View the full answer