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Marigold Company signed a long$-$term noncancelable purchase commitment with a major supplier to purchase raw materials in $2026$ at a cost of $$993,000.$ At December $31,2025,$ the raw materials to be purchased have a market value of $$945,800.$ In $2026,$ Marigold paid $$993,000$ to obtain the raw materials which were worth $$945,800.$

Prepare the entry to record the purchase assuming the company uses a periodic inventory system. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Estimated Liability on Purchase Commitments

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List of Accounts

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