Exercise 16-6 (Part Level Submission) On January 1, 2020, Sheridan Ltd. entered into a purchase commitment contract to buy 10,300 oranges from a local company at a price of $0.40 per orange any time during the next year. The contract provides Sheridan with the option either to take delivery of the oranges at any time over the next year, or to settle the contract on a net basis for the difference between the agreed-upon price of $0.40 per orange and the market price per orange for any oranges that have not been delivered. As at January 31, 2020, Sheridan Ltd. did not take delivery of any oranges, and the market price for an orange was $0.39. (a) Assuming that Sheridan Ltd. follows IFRS, how should Sheridan Ltd. account for this purchase agreement if it fully intends to take delivery of all 10,300 oranges over the next year? Prepare any required journal entries at January 1 and January 31. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit