On November 1, 2017, Cone Company Sold Inventory to a Foreign

Multiple Choice

On November 1, 2017, Cone Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of 250,000 foreign currency units (FCU) . On November 1, Cone also entered into a forward contract to hedge the exposed asset. The forward rate is $0.90 per unit of foreign currency. Cone has a December 31 fiscal year-end. Spot rates on relevant dates were: The entry to record the forward contract is

A) FCU Receivable, 225,000; Premium on Forward Contract, 7,500; Dollars Payable, 232,500
B) Dollars Receivable, 232,500; Discount on Forward Contract, 7,500; FCU Payable, 225,000
C) FCU Receivable, 232,500; Discount on Forward Contract, 7,500; Dollars Payable, 225,000
D) Dollars Receivable, 225,000; Discount on Forward Contract, 7,500; FCU Payable, 232,500