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On Ocfober 6,2021, the Elgin Corporation signed a purchase cammitiment to nurchase inventory for $72.000...

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Accounting

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On Ocfober 6,2021, the Elgin Corporation signed a purchase cammitiment to nurchase inventory for $72.000 on or before March 31 . 2022. The companys fiscalyear end is December 31. The contract was exercised on March 21, 2022, and the inventory was purchased for cash at the contract price, On the purchase date of March 21, the market price of the inventory was $58,000, The market price of the invertory on December 31, 2021, was $64,000. The coripany uses a perpetual inventory system. Required: 1. Prepare tho necessary adjesting journal entry (if any is required) on Decomber 31, 2021. (if no entry is required for a tranpactiondevent, select "No journal entry required" in the first account field.) 2. Prepore the,oumal entry to record the purchase on March 21, 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record any necessary adjusting entry related to the purchase commitment

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