The CEO of Evans & Sons, Inc., negotiated with its principal supplier of raw materials to purchase

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The CEO of Evans \& Sons, Inc., negotiated with its principal supplier of raw materials to purchase 10,000 units for a total price of \(\$ 100,000\). The units are to be delivered in 90 days. The CEO is uncertain whether she should record the purchase commitment on the company's balance sheet as a liability or not. She asks for your advice. What would you advise her?

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