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On September 5, 2018, Howard Corporation signed a purchase commitment to purchase ventory for $140,000 on or before March 31, 2019. The company's fiscal year-end

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On September 5, 2018, Howard Corporation signed a purchase commitment to purchase ventory for $140,000 on or before March 31, 2019. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2019, and the inventory was murchased for cash at the contract price. On the purchase date of March 4, the market price of the inventory was $124,000. The market price of the inventory on December 31, 2018, was $129,000. The company uses a perpetral inventory system. Required: 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2018. 2. Prepare the journal to record the purchase on March 4, 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the necessary adjusting journal entry (if any is required) on December 31, 2018. (If noe select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment necessary to reflect the average cost method. Required 1 Required 2 Prepare the necessary adjusting journal entry (if any is required) on December 31, 2018 select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment necessary to reflect the average cost method. Note: Enter debits before credits. Credit Date General Journal December 31, 2018 Estimated loss on purchase commitment Estimated liability on purchase commitment Debit 11,000 11,000 Record entry Clear entry View general jour quired 1 Required 2 pare the journal to record the purchase on March 4, 2019. (If no entry is required for quired" in the first account field.) lew transaction list Journal entry worksheet Record the purchase of inventories. Note: Enter debits before credits. Credit Date General Journal March 04, 2019 Inventory Estimated liability on purchase commitment Loss on purchase commitment Debit 124,000 11,000 5,000 Cash 140,000 Record entry Clear entry View general journal

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