Sheridan Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $1,001,800. At December 31, 2020, the raw materials to be purchased have a market value of $948,900. In 2021, Sheridan paid $1,001,800 to obtain the raw materials which were worth $948,900. Sheridan uses a periodic inventory system.

Prepare the entry to record the purchase. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)