On September 1, 2015, Bea company entered into a 6-month, P2,600.000 purchase commitment for a supply of a special product on Feb. 28, 2016. On December 31, 2015, the market value of this material had fallen to P2,500.000. On Feb. 28, 2016, the market value of the purchase commitment is P2,450.000. O What is the entry on December 31, 2015?

On September 1, 2015, Bea company entered into a 6-month, P2,600.000 purchase commitment for a supply of a special product on Feb. 28, 2016. On December 31, 2015, the market value of this material had fallen to P2,500.000. On Feb. 28, 2016, the market value of the purchase commitment is P2,450.000. O What is the entry on December 31, 2015?

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 5RE: Dani Corporation signed a binding commitment on December 2 to purchase inventory for 300,000 cash on...

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