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On September 5, 2018, Howard Corporation signed a purchase commitment to purchase inventory for $120,000 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 inventory for $120,000 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 purchased for cash at the contract price. On the purchase date of March 4, the market price of the inventory was $108,000. The market price of the inventory on December 31, 2018, was $111,000. The company uses a perpetual 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 no entry is required for a transaction/event, 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 Date General Journal Debit Credit Required 1 Required 2 Prepare the necessary adjusting journal entry (if any is required) on December 31, 2018. (If no entry is required for a transaction/event, 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 Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Required 1 Required 2 Prepare the journal to record the purchase on March 4, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of inventories. Note: Enter debits before credits Date General Journal Debit Credit March 04, 2019 Record entry Clear entry View general journal

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