Essay
On November 1, 20X1, a U.S. company sold merchandise to a foreign firm for 100,000 FC with payment to be made on January 31, 20X2, in FC. To hedge against fluctuations in exchange rates, the firm also entered into a forward exchange contract on November 1, 20X1 to sell 100,000 FC on January 31, 20X2. The U.S. firm has a December 31 year end for accounting purposes. The following exchange rates may apply: 
Discount rate = 10%
Required:
Make all the necessary journal entries for the U.S. firm relative to these events occurring between November 1, 20X1, and January 31, 20X2.
Correct Answer:
Verified
Correct Answer:
Verified
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