(IA1.10 5 Marks) Medical Supply Ltd. has entered into an agreement with Pandemic Manufacturing for 1,000,000 N95 medical masks at $1.50 per mask due to the pandemic. During fiscal 2020 Medical supply has purchased 600,000 N95 masks under the agreement. Due to the surplus N95 medical masks and the introduction of vaccines for the pandemic, the market price for N95 medical masks on December 31 is $0.56. Required: Part A Assuming that the agreement with Pandemic Manufacturing is non-cancelable prepare the journal entry at year end (3 marks) Part B Under what conditions would Medical Supply Ltd. not have to record a journal entry for recognizing a loss and a provision on a contract. (2 Marks) Answer Part A: Format BIU 4 ACCOUNT TITLES AND DATE EXPLANATION GENERAL JOURNAL DEBIT CREDIT