Give the entry in January $2026,$ when the $37,500-$gallon shipment is received, assuming that the situation given in $($b$2)$ above

existed at December $31,2025,$ and that the market price in January $2026$ was $$3\mathrm{.}35$ per gallon. Prepare the journal entry for

when the materials are received in January $2026.($List all debit entries before credit entries. Credit account titles are automatically

indented when amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the

amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Jan.

$2026$

Estimated Liability on Purchase Commitments