Prepare journal entries to record the following two transactions:

1. During the current fiscal year, ABC Corp. signed a long-term noncancellable purchase commitment with its primary supplier. ABC agreed to purchase $4.0 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $3.2 million. What is the journal entry at the end of the current fiscal year?

2. During the next year, ABC Corp. paid the $4.0 million to acquire the raw materials when the raw materials were only worth $3.0 million. Assume that the purchase commitment was properly recorded. What is the journal entry to record the purchase?