During 20X7, Omega Corp. signed a contract with Alpha Inc. to purchase 19,000 subassemblies at $155 each during 20X8. Required: 2. Assume that the cost of the subassemblies is dropping and the total estimated current replacement cost is $2,736,000. What contractual and economic conditions would require accrual of a loss? Give the accrual entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Assume that the subassemblies are received in 20X7 when their replacement cost was $2,698,000. The contract was paid in full. Give the required entry, assuming the entry in requirement 2 was made, and a periodic inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)