During the current fiscal year, Pharoah Corp. signed a long-term non-cancellable purchase commitment with its primary supplier. Pharoah agreed to purchase $2.08 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $1.64 million. What is the journal entry at the end of the current fiscal year? Debit Estimated Liability on Purchase Commitments for $440000 and credit Loss on Purchase Commitments for $440000 Debit Loss on Purchase Commitments for $440000 and credit Estimated Liability on Purchase Commitment for $440000 No journal entry is required Debit Loss on Purchase Commitments for $1640000 and credit Estimated Liability on Purchase Commitments for $1640000