On November 15, 2015, Bubbles company entered into a P5,200,000 purchase commitment for a supply of a special product on Feb. 15, 2016. On December 31, 2015, the market value of this material had fallen to P5,000,000. On Feb. 15, 2015, the market value of the purchase commitment is P5,100,000. What is the entry on Feb 15, 2016?

On November 15, 2015, Bubbles company entered into a P5,200,000 purchase commitment for a supply of a special product on Feb. 15, 2016. On December 31, 2015, the market value of this material had fallen to P5,000,000. On Feb. 15, 2015, the market value of the purchase commitment is P5,100,000. What is the entry on Feb 15, 2016?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3MC: During 2019, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of...

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