On December 31, 2021, the market value of this material had6-month, P5,200,000 purchase commitment for a supply of aOn October 1, 2021, Gorgeous Company entered into aProblem 12-16 (IAA)apecial product.fallen to P5,000,000On March 31, 2022, the market value of the purchasecommitment is P4,900,000.What amount should be recognized as loss on purchasecommitment ìn 2022?a. 200,000b. 100,000c. 300,000d.0.

Purchase commitment refers to the firm's commitment to acquire the goods and services from the…

Answered: What amount should be recognized as…

Business

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What amount should be recognized as loss on purchase pommitment in 2022? 200,000 p. 100,000 E. 300,000 0.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On December 31, 2021, the market value of this material had
6-month, P5,200,000 purchase commitment for a supply of a
On October 1, 2021, Gorgeous Company entered into a
Problem 12-16 (IAA)
apecial product.
fallen to P5,000,000
On March 31, 2022, the market value of the purchase
commitment is P4,900,000.
What amount should be recognized as loss on purchase
commitment ìn 2022?
a. 200,000
b. 100,000
c. 300,000
d.
0.

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