Question 6 1 pts During 2017, Larue Co., a manufacturer of chocolate candies, contracted to purchase 250,000 pounds of cocoa beans at $4.00 per pound, delivery to be made in the spring of 2018. Because a record harvest is predicted for 2018, the price per pound for cocoa beans had fallen to $3.30 by December 31, 2017 of the following journal entries, the one which would properly reflect in 2017 the effect of the commitment of Larue Co. to purchase the 250,000 pounds of cocoa is 1,000 1,000 825,000 175,000 O Cocoa Inventory Accounts Payable Cocoa Inventory Loss on Purchase Commitments Accounts Payable Unrealized Holding Gain or Loss-Income Estimated Liability on Purchase Commitments No entry would be necessary in 2017 1,000 175,000 175,000 Question 6 1 pts During 2017, Larue Co., a manufacturer of chocolate candies, contracted to purchase 250,000 pounds of cocoa beans at $4.00 per pound, delivery to be made in the spring of 2018. Because a record harvest is predicted for 2018, the price per pound for cocoa beans had fallen to $3.30 by December 31, 2017 of the following journal entries, the one which would properly reflect in 2017 the effect of the commitment of Larue Co. to purchase the 250,000 pounds of cocoa is 1,000 1,000 825,000 175,000 O Cocoa Inventory Accounts Payable Cocoa Inventory Loss on Purchase Commitments Accounts Payable Unrealized Holding Gain or Loss-Income Estimated Liability on Purchase Commitments No entry would be necessary in 2017 1,000 175,000 175,000