Question 22 of 30 View Policies Current Attempt in Progress -/2 E 1 During 2020, Ivanhoe Co., a manufacturer of chocolate candies, contracted to purchase 240000 pounds of cocoa beans at $3.00 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 $2.80 by December 31, 2020. Of the following journal entries, the one which would properly reflect in 2020 the effect of the commitment of Ivanhoe Co. to purchase the 240000 pounds of cocoa is O Cocoa Inventory 672000 Loss on Purchase Commitments 48000 Accounts Payable 720000 Unrealized Holding Gain or Loss-Income Estimated Liability on Purchase Commitments No entry would be necessary in 2020. Cocoa Inventory Accounts Payable 48000 48000 720000 720000