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Vaughn Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw...

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Accounting

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Vaughn Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $1,001,000. At December 31,2025 , the raw materials to be purchased have a market value of $955,300. In 2026, Vaughn paid $1,001,000 to obtain the raw materials which were worth $955,300. Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

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