On November 1, 2014, National Company Sold Inventory to a Foreign

Short Answer

On November 1, 2014, National Company sold inventory to a foreign customer.The account will be settled on March 1 with the receipt of 200,000 foreign currency units (FCU).On November 1, National also entered into a forward contract to hedge the exposed asset.The forward rate is $0.80 per unit of foreign currency.National has a December 31 fiscal year-end.Spot rates on relevant dates were: What will be the adjusted balance in the Accounts Receivable account on December 31, and how much gain or loss was recorded as a result of the adjustment?