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On November 1,2023, a firm enters into a commitment to purchase $100,000 of inventory on...

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Accounting

On November 1,2023, a firm enters into a commitment to purchase $100,000 of inventory on March 15,2024. The net realizable value of inventory on 12/31(fiscal year-end) is $95,000. On March 15, the firm settles the contract by purchasing all required inventory. On March 15, the net realizable value of the inventory is $98,000. The entry recorded on March 15(assume perpetual inventory system):
Group of answer choices
Reduces total assets, liabilities, and stockholders equity
Increases and decreases assets by same amount, liabilities and stockholders equity are unaffected
Reduces total assets and liabilities, stockholders equity is unaffected
Reduces total assets and stockholders equity, liabilities are unaffected
Reduces liabilities and stockholders equity, total assets are unaffected

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