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Princess Company entered into a purchase commitment on November 15,2021, for 20,000 kilos of Raw Materials at ?25 per kilo to be delivered on March 15,2022.
Case No.1: At the end of 2021, the price dropped to ?20 per kilo. Then on March 15,2022, the price has increased to ?36 per kilo.
Case No.2: At the end of 2021, the price has increased to ?35 per kilo. Then on March 15, 2022. The price has increased to ?36 per kilo.
Problem 1: Help to make the journal entries for each case
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