Purchase Commitments) Prater Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2011, at an agreed price of $516,000. Under the long-term purchase commitment, all supplies are planned after December 31, 2011. At December 31, 2011, the raw material had declined in price to $470,850. What entry would you make on December 31, 2011, to recognize these facts? Description/Account Debit Credit Accounts payableRaw materialsUnrealized holding gain or loss-Income(Purchase commitments)Estimated liability on purchase commitments Estimated liability on purchase commitmentsUnrealized holding gain or loss-Income(Purchase commitments)Raw materialsAccounts payable