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On 12/1/06, Salox Entered into a 50-Day FX Forward to Hedge

Question 146

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On 12/1/06, Salox entered into a 50-day FX forward to hedge a noncancellable sales order it received that day that will require payment of 1,000,000 euros in 50 days by a French customer. Direct exchange rates for the euro are as follows:
On 12/1/06, Salox entered into a 50-day FX forward to hedge a noncancellable sales order it received that day that will require payment of 1,000,000 euros in 50 days by a French customer. Direct exchange rates for the euro are as follows: Required: a. Prepare all journal entries relating to the FX forward over the contract's life. b. Prepare the journal entry to record the inventory sale. Required:
a. Prepare all journal entries relating to the FX forward over the contract's life.
b. Prepare the journal entry to record the inventory sale.

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