Accounting for Inventory Transactions with Purchase Commitments During 2020, Moss Company signed a contract with a supplier to purchase 54,000 subassemblies at $30 each during 2021. The company uses the FIFO method to account for inventory. Assume Moss Company uses a periodic inventory system. a. The cost of subassemblies had declined and the estimated net realizable value is $1,530,000 on December 31, 2020. Prepare any year- end entry required for this cost decline. b. The subassemblies are received in 2021 when the net realizable value is estimated at $1,530,000. The contract was paid in full. Prepare the required purchase entry in 2021. Account Name Dr. Cr. a. Estimated Loss on Purchase Commitment 1,530,000 x 0 0 1,530,000 x Estimated Liability on Purchase Commitment b. Subassemblies Purchases 0 1,530,000 1,530,000 x Estimated Liability on Purchase Commitment Cash 0 1,530,000 x