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Question - In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 11,000 units of inventory at $8 per unit by December 15, 2018. The second commitment requires the company to purchase 21,000 units of inventory at $9 per unit by March 15, 2019. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date.
Required: Prepare the journal entry to record the December 15 purchase for cash assuming the following alternative unit market prices on that date:
1. $8.50
2. $7.50
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