Question: Sheridan Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $1,001,800. At December

Sheridan Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $1,001,800. At December 31,2025 , the raw materials to be purchased have a market value of $948,900. Prepare any necessary December 31, 2025, entry. (List all debit entrles before credit entries. Credit occount tilles are automoticolly indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the omounts.)

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