Pino Inc. is a BC-based wine producer. In anticipation of a particularly bounteous grape harvest and a potential problem in obtaining a sufficient volume of shipping crates, Pino entered into a noncancellable agreement with Lumber Products Ltd. to supply 130,000 wooden crates at a price of $27 per crate plus 7% PST and 5% GST. During the current fiscal year, Pino purchased 32,500 crates. Near the end of the year, however, a restrictive tariff on the import of crates from the United States was lifted. Crates then became readily available from other suppliers for only $20 plus tax. Required: 1. Prepare the journal entry to record the purchase of crates during the current fiscal year, (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Bed No Transaction 1 Oeneral Journal Debit 1 Crate Inventory GST payable Accounts payable 877,500 81425 982,800 2. Prepare the journal entry to record the impact of the price drop. (If no entry is required for a transaction/event, select "No joural entry required" In the first account field.) Truco Credit 1 Ontral Journal Estimated loss on onerous purchase contract Provision for onerous contrad Debit 2,948,400 2,948.400