1) On April 1, French Inc. signs a $600,000 contract with their supplier to produce 2,000,000 units of inventory starting October 1. On July 31, a decrease in production costs reduces the contract's market value to $520,000.Record the July 31 adjusting entry (if necessary).

2) On February 14, Urlach Corp. purchases $7,800 of inventory on account with terms 3/10, N/30. On February 28, the company pays off their full balance due from the purchase. Assume the company uses thegrossmethod for discounts and theperpetualmethod for inventory.Record the February 28 entry for the payment. You may round amounts to the nearest dollar