During 2016, R Corp., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of cocoa beans at $1.00 per pound, delivery to be made in the spring of 2017. Because a record harvest is predicted for 2017, the price por pound for cocoa beans had fallen to $0.80 by December 31, 2016. of the following journal entries, the one that would properly reflect in 2016 the effect of the commitment of Corp. to purchase the 100,000 pounds of cocoa is: PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Dec 31 Inventory 100,000.00 Accounts Payable 100,000.00 Previous Next All work saved Email Instructor Submit Test for G Multiple Choice 7-3 Because a record harvest is predicted for 2017, the price per pound for cocoa beans had fallen to $0.80 by December 31, 2016. of the following journal entries, the one that would properly reflect in 2016 the effect of the commitment of Corp. to purchase the 100,000 pounds cocoa is: I PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT Dec. 31 100,000.00 Inventory Accounts Payable 2 100,000.00 Previous All work saved Email Instructor Sub PAGE 1 GENERAL JOURNAL ACCOUNT TITLE POST. REF. DEBIT DATE Dec. 31 CREDIT Inventory 80,000.00 2 Loss on Purchase Commitments 20,000.00 3 Accounts Payable 100,000.00 b Previous All work saved Email Instructor Subm b. f PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Dec. 31 Loss on Purchase Commitments 20,000.00 2 Accrued Loss on Purchase Commitments 20,000.00 C. Nnant would be norocean in 2016 Previous All work saved Email Instructor Submit Accrued Loss on Purchase Commitments c. d. No entry would be necessary in 2016