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 $684,010. At December 31, 2014, the raw material had declined in price to $654,310.

What entry would you make on December 31, 2014, to recognize these facts? (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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 $684,010. At December 31, 2014, the raw material had declined in price to $654,310.What entry would you make on December 31, 2014, to recognize these facts? (Credit account titles are automatically indented when amount is entered. Do not indent manually.)