Accounting for Futures
Dr. COGS 1,000,000. Cr. Inventory 1,000,000 Example 2. It is June 30. On Jan 1, you have a contract to sell 100,000 units of a highly perishable good at $10 each. You will have to purchase those goods on the same day, but are concerned that you will not know what the cost will be. You contract to buy the goods at $5 per unit. No entry ................
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