On November 25, 2019, RT company entered into a commitment to purchase 10,000 units of product G

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On November 25, 2019, RT company entered into a commitment to purchase 10,000 units of product G on February 15, 2020 at a price of 310 per unit.

On December 31, 2019, the market price of Product G is P270 per unit. on February 15, 2020 the market price of product G is P 300 per unit.

What is the loss on purchase commitment to be recognized on December 31, 2019?

What is the gain on purchase commitment to be recognized on February 15, 2020?

What amount should be debited to purchase on February 15, 2020?

What amount should be recognized as accounts payable on February 15, 2020?

Posted Date: May 10, 2024 03:38 AM

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On November 25, 2019, RT company entered into a commitment to purchase 10,000 units of product G

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To calculate the loss on purchase commitment to be recognized on December 31 2019 we compare the com... View the full answer

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