2. During 2020, Zayed Co., a manufacturer of chocolate candies, contracted to purchase 300,000 pounds of cocoa beans at $4.00 per pound, delivery to be made in the spring of 2021. Because a record harvest is predicted for 2021, the price per pound for cocoa beans had fallen to $3.40 by December 31, 2020. What is the journal entry, which would properly reflect in 2020 the effect of the commitment of Zayed Co. to purchase the 250,000 pounds of cocoa, is 1 3. Khan, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on sale is 25%. The following account balances are available: Inventory, March 1 $550,000 Purchases 420,000 Purchase returns 20,000 Sales during March 750,000 The estimate of the cost of inventory at March 31 would be 4.The inventory account of Mike Company at December 31, 2020, included the following items: Inventory Amount Merchandise out on consignment at sales price (including markup of 40% on selling price) $60,000 Goods purchased, in transit (shipped f.o.b. shipping point) 48,000 Goods held on consignment by Irick 62,000 Goods out on approval (sales price $30,400, cost $25,600) 30,400 Based on the above information, the inventory account at December 31, 2020, should be reduced by I 5. The following data concerning the conventional retail inventory method are taken from the financial records of Waleed Company. Cost Retail Beginning inventory $.196.000 $ 280,000 Purchases 896,000 1,280,000 Freight-in 24,000 Net markups 80,000 Net markdowns 56,000 Sales 1,344,000 What is the ending inventory using the conventional method