prior fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase lion to acquire the raw materials when the raw materials were 48. During the with its primary supplier to purchase $2.0 milion of raw materials. commitment Jeremiah paid the $ oaly worth S1.6 million. Assume that the purchase commitment was pro What is the journal entry to record the purchase? A) Debit Inventory for $1,600,000, debit Estimated Liability on Purchase 2.0 mil Commitments for $400,000 and credit Cash for $2,000,000. B) Debit Inventory for $2,000,000, and credit Cash for $2,000,000 C) Debit Inventory for $1,600,000, debit Unrealized Holding Gain or Loss for $400,000, and credit Cash for $2,000,000. Debit Inventory for $1,600,000, and credit Cash for $1,600,000. D) 49. Lower-of-cost-cr-market A) is most conservative if applied to major categories of inventory ) is most conservative ifapplied to individual items of inventory C) must be applied to major categories for taxes. D) is most conservative if applied to the total inventory. 50. Trade discounts are A) used to induce prompt payment. B) presented in terms such as 2/10, n/30. C) used to avoid frequent changes in catalogs D) recorded as other revenues and gains