Exercise 9-9

Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2014, at an agreed price of $443,400. At December 31, 2014, the raw material had declined in price to $409,020. What entry would you make on December 31, 2014, to recognize these facts