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Harvey's Junk Jewelry started business January 1,2024 , and uses the LIFO...

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Accounting

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Harvey's Junk Jewelry started business January 1,2024 , and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2024: The estimated ending inventory at retail is: Multiple Choice $26,000. $27,100. $26,200. $24,700. On July 10,2024 , a company signed a purchase commitment to purchase inventory for $320,000 on or before February 15, 2025. The company's fiscal year-end is December 31. The contract was exercised on February 1 , 2025 , and the inventory was purchased for cash at the contract price. On the purchase date of February 1 , the market price of the inventory was $325,000. The market price of the inventory on December 31,2024 , was $293,000. The company uses a perpetual inventory system. How much loss on purchase commitment will the company recognize in 2024? Multiple Choice $27,000. None. $32,000. $5,000

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