The Journal Entry to Record the Existence of a Loss $\begin{array}{cc}\text { Accrued Loss on Purchase Commitments } & \mathrm{XXX} \\\text { Loss on Purchase Commitments } & \mathrm{XXX}\end{array}$

The journal entry to record the existence of a loss on a non-cancellable fixed purchase contract is

A)
$\begin{array}{cc}\text { Accrued Loss on Purchase Commitments } & \mathrm{XXX} \\\text { Loss on Purchase Commitments } & \mathrm{XXX}\end{array}$
B)
Loss on Purchase Commitments $\quad \mathrm{XXX}$
Accrued Loss on Purchase Commitments $\quad \mathrm{XXX}$
C)
$\begin{array}{lr}\text { Loss on Purchase Commitments } & \text { XXX } \\\text { Accounts Payable } & \mathrm{XXX}\end{array}$
D)
Loss on Purchase Commitments $\quad$$\quad$ $\quad \mathrm{XXX}$
Allowance to Reduce Inventory to Lower of Cost or Market $\quad$ XXX