Answer:
Entry for december 1, 2021:
Purchase Inventory=$853,000
Liability on purchase commitment=$902,900-$853,000
Liability On purchase commitment=$49000
Cash=$902,900
Explanation:
Entry for december 1, 2021:
Purchase Inventory=$853,000
Liability on purchase commitment=$902,900-$853,000
Liability On purchase commitment=$49000
Cash=$902,900
<span>The difference may lie in the project life, sometimes referenced as the planning horizon. A project may have a large internal rate of return (irr), but a very short project life. A second project might have a lower irr, but a much longer life. In that case, the second project will return less per year, but will provide a return for many more years, resulting in a higher pw.</span>
<span>
<span>The
liability created by receiving cash before providing the service or
delivering the goods in question is called unearned revenue. In this case, the entity providing the
goods/services records this transaction as revenue that has been generated
but in real sense, the seller remains with the liability until after the actual delivery
of the goods/services. The purpose of this practice can be advantageous to
the seller in certain situations such as easing the burden of paying interest
on debts.</span></span>
