Instructions Dani Corporation signed a binding commitment on December 2 to purchase inventory for $400,000 cash on January 2. By December 31, the market price (replacement cost) of the inventory had declined to $385,000. Required: Prepare Dani's journal entries at year-end and at the date of purchase. Chart of Accounts CHART OF ACCOUNTS Dani Corporation General Ledger General Journal Prepare Dani's journal entries on December 31, 2019 and on January 2, 2020 assuming Dani purchases on account and uses a perpetual inventory system. General Journal Instructions GENERAL JOURNAL DATE ACCOUNT TITLE 1 2 3 4 5 PAGE 1 POST. REF. DEBIT CREDIT ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 142 Allowance for Inventory Valuation 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 241 Accrued Loss on Purchase Commitment 251 Unearned Revenue EQUITY 311 Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 510 Purchases 511 Purchase Returns and Allowances 512 Purchase Discounts Taken 513 Purchase Discounts Lost 514 Loss on Purchase Commitment 515 Recovery of Accrued Loss on Purchase Commitment 521 Insurance Expense 522 Utilities Expense 523 Salaries Expense 524 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses