Use the information for Kemper Company from BE9-7. In 2016, Kemper paid $1,000,000 to obtain the raw materials which were worth $950,000. Prepare the entry to record the purchase.

Data From BE9-7

Kemper Company signed a long-term, non-cancelable purchase commitment with a major supplier to purchase raw materials in 2016 at a cost of $1,000,000. At December 31, 2015, the raw materials to be purchased have a fair value of $950,000. Prepare any necessary December 31 entry.