At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 pergallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market,whichever is lower.Your answer is partially correct.Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (Credit account titles are automaticallyIndented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for theamounts. Round answers to O decimal places, eg. 6,225)Date Account Titles and ExplanationCreditEstimated Liability on Purchase Cont Give the entry in January 2021, when the 39,500-gallon shipment is received, assuming that the situation given in (b2) aboveexisted at December 31, 2020, and that the market price in January 2021 was $3.62 per gallon. Prepare the journal entry forwhen the materials are received in January 2021. (Credit account titles are automatically indented when amount is entered. Do notIndent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. Round answers to 0 decimalplaces, eg. 6,225)DateAccount Titles and ExplanationDebitCreditJan, 2021Raw MaterialsEstimated Liability on Purchase CommitmentsAccounts Payable

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Description: At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 pergallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market

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At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market. whichever is lower Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (Credit account titles are automatically 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 amounts Round answers to 0 decimal places 6,225) Date Account Titles and Explanation Debit Credit

At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market. whichever is lower Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (Credit account titles are automatically 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 amounts Round answers to 0 decimal places 6,225) Date Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, 2020, Sandhill Company has outstanding noncancelable purchase commitments for 38,000 gallons, at $3.30 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. (b2) Assuming that the market price as of December 31, 2020, is $ 2.97, record the journal entry. (Credit account titles are automatically 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 amounts. Round answers to 0 decimal places, eg. 6,225.) Date Account Titles and Explanation Debit Credit Dec. 31
At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market. whichever is lower. Your answer is partially correct. Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (Credit account titles are automatically 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 aniounts. Round answers to 0 decimal places, eg. 6,225) Date Account Titles and Explanation Debit Credit Dec. 31 Unrealized Holding Gain or Loss-Income Estimated Liability on Purchase Commitments
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