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Recording Inventory Entries with Purchase Commitments on Reporting and Purchase Dates

November $1$ of the current year, a company entered into a purchase contract $($not subject to revision or cancellation$)$ to purchase $1,000$ units of inventory for $$50$ per unit before January $31$ of the following year. On November $1,$ the contract price was equal to the market price. The company measures the cost of inventory using the LIFO inventory method.

a$.$ If the inventory has a market price of $$40$ per unit' on December $31,$ what entry $($if any$)$ does the company record on that date when preparing financial statements?

b$.$ Record the purchase of $1,000$ units on January $15,$ if the market price remained at $$40$ per unit. Assume that the company uses a perpetual inventory system.

$\backslash$table$[[$ Account Name,Dr$.,$Cr$.],[$a$.,$Estimated Loss on Purchase Commitment,$,10,000,0],[,$Estimated Liability on Purchase Commitment,$,0,10,000],[,$To record the purchase contract.,,,$],[$b$.,$Cash,$,50,000,0],[,,,0,0],[,$Torecord the,$,0,0],[,$To record the purchase of inventory,,,$]]$