Use the information for Kemper Company from BE9.7. In 2023, Kemper paid $1,000,000 to obtain the raw materials which were worth $950,000. Prepare the entry to record the purchase.

BE9.7.

Kemper Company signed a long-term, non-cancelable purchase commitment with a major supplier to purchase raw materials in 2023 at a cost of $1,000,000. At December 31, 2022, the raw materials to be purchased have a fair value of $950,000. Prepare any necessary December 31 entry.