Recording Inventory Entries with Purchase Commitments on Reporting Dates On November 1, 2020, 5M Corporation entered into a purchase contract (not subject to revision or cancellation) to purchase 1,600 units of inventory for $50 per unit before January 1, 2021. The company uses the LIFO inventory method. a. If the inventory has a market price of $45 per unit on November 30, 2020, what entry (if any) does 5M Corporation record? b. If instead the inventory has a market price of $55 per unit on November 30, 2020, what entry (if any) does 5M Corporation record? Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Cr. a. Estimated Loss on Purchase Commitment 8000 Estimated Liability on Purchase Commitment b. N/A 8,000