During 2020, Wildhorse Co., a manufacturer of chocolate candies, contracted to purchase 247000 pounds of cocoa beans at $3.70 per pound, delivery to be made in the spring of 2021. Because a record harvest is predicted for 2021, the price per pound for cocoa beans had fallen to $3.15 by December 31, 2020. of the following journal entries, the one which would properly reflect in 2020 the effect of the commitment of Wildhorse Co. to purchase the 247000 pounds of cocoa is O No entry would be necessary in 2020 Cocoa Inventory Loss on Purchase Commitments Accounts Payable 778050 135850 913900 135850 Unrealized Holding Gain or Loss-Income Estimated Liability on Purchase Commitments 135850 913900 Cocoa Inventory Accounts Payable 913900