Question: 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

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

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?

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