Concord company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $1,024,100. at december 31, 2020, the raw materials to be purchased have a market value of $978,600. in 2021, concord paid $1,024,100 to obtain the raw materials which were worth $978,600. 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.)

Explanation:

The journal entry is shown below:

Unrealized holding gain or loss A/c Dr $45,500

        To Estimated liability on purchase commitments A/c $45,500

(Being the unrealized gain or loss is recorded)

The computation of the unrealized gain or loss is shown below:

= Purchase price of raw material - market value

= $1,024,100 -  $978,600

= $45,500

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.