On 7/1, a Company Forecasts the Purchase of 10,000 Units

Essay

On 7/1, a company forecasts the purchase of 10,000 units of inventory from a foreign vendor. The forecasted cost is estimated to be 150,000 FC. It is estimated inventory will be delivered 11/1. Also, on 7/1, the company purchased a call option to buy 150,000 FC at a strike price of $0.60 anytime during October. An option premium of $2,000 was paid.
Required:
Prepare the journal entries required through 10/1.