On October 1, 2015, Sloan Oil Inc. entered into a six-month, $650,000 purchase commitment for a supply
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On October 1, 2015, Sloan Oil Inc. entered into a six-month, $650,000 purchase commitment for a supply of oil. On December 31, 2015, the market value of oil had fallen to $552,500. Make the journal entries necessary on December 31, 2015, and on March 31, 2016, assuming that the market value of the inventory on March 31 is $430,000.
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Purchase commitment 650000 December 31 2015 market value 552500 Loss incurred 97500 ...View the full answer
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