Prepare journal entries to record the following transactions On October 15, Stover Co., a manufacturer of chocolate candies Chad to get chocolate in here somewhere!), contracted to purchase a shipment of cocoa beans for $5,000, delivery to be made in the following spring. Stover uses the perpetual inventory method. #1 Because a record crop is expected next year, the price of the cocoa beans had fallen to $4,000 by year end. Prepare the journal entry on December 31 related to this purchase commitment #2 When the contract closed in spring the price of cocoa beans was $5,500. Prepare the journal entry to record the purchase of cocoa beans for cash #3 If INSTEAD, the price of cocoa beans was $3,500 when the contract was closed, prepare the journal entry to record the purchase of cocoa beans for cash