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Business, 07.04.2020 00:33 josebienka

Pearl Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2020, at an agreed price of $402,800. At December 31, 2020, the raw material had declined in price to $367,300.

What entry would you make on December 31, 2020, to recognize these facts?

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