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On September 5, 2018, Howard Corporation signed a purchase commitment to purchase inventory for $126,000 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 $126,000 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 $112,800. The market price of the inventory on December 31, 2018, was $116,400. 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 View transaction list Journal entry worksheet 1 Record the adjustment necessary to reflect the average cost method. Note: Enter debits before credits. General Journal Date December 31, 2018 Debit Credit ON No journal entry required Accounts payable Accounts receivable Accumulated depreciation Record entry View general journal Required Required 2 > View transaction list Journal entry worksheet 1 Record the purchase of inventories. Note: Enter debits before credits. Date General Journal Debit Credit March 04, 2019 No journal entry required Accounts payable Accounts receivable Accumulated depreciation Record entry View general journal View transaction list Journal entry worksheet 1 Record the purchase of inventories. Note: Enter debits before credits. Date General Journal Debit Credit March 04, 2019 No journal entry required Accounts payable Accounts receivable Accumulated depreciation Record entry View general journal

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