During the prior fiscal year, Ivanhoe Corp. signed a long-term non-cancellable purchase commitment with its primary supplier to purchase $2.04 million of raw materials. Ivanhoe paid the $2.04 million to acquire the raw materials when the raw materials were only worth $1.62 million. Assume that the purchase commitment was properly recorded. What is the journal entry to record the purchase? Debit Inventory for $2040000, and credit Cash for $2040000 During the prior fiscal year, Ivanhoe Corp. signed a long-term non-cancellable purchase commitment with its primary supplier to purchase $2.04 million of raw materials. Ivanhoe paid the $2.04 million to acquire the raw materials when the raw materials were only worth $1.62 million. Assume that the purchase commitment was properly recorded. What is the journal entry to record the purchase? Debit Inventory for $2040000, and credit Cash for $2040000