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Contingent Liabilities The CEO of Smith & Sons, Inc., negotiated with its principal supplier of raw materials to purchase 10,000 units for a total price

Contingent Liabilities The CEO of Smith & Sons, Inc., negotiated with its principal supplier of raw materials to purchase 10,000 units for a total price of $100,000. The units are to be delivered in 90 days. The CEO is uncertain whether she should record the purchase commitment on the companys balance sheet as a liability or not. She asks for your advice. What would you advise her?

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