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At December 31, 2020, Kingbird Company has outstanding noncancelable purchase commitments for 39,500 gallons, at $4.02 per gallon, of raw material to be used in

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At December 31, 2020, Kingbird 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. (b2) 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 O decimal places, e.g. 6,225.) Date Account Titles and Explanation Debit Credit Dec. 31 Accounts Payable Adjustment to Record Inventory at Cost Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to NRV Biological Assets - Shearing Sheep Cost of Goods Sold Estimated Liability on Purchase Commitments Income Summary Inventory Inventory Over and Short Loss Due to Decline of Inventory to NRV Loss Due to Market Decline of Inventory Loss on Fire Notes Payable Purchases Raw Materials Recovery of Loss Due to Market Decline of Inventory Recovery of Loss Due to Impairment Recovery of Loss Inventory Salaries and Wages Expense Sales Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss -Income Wool Inventory

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