On November 1, 20X8 Desket, Inc ?
Required:
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Prepare All Necessary Entries Through December 31

Essay

On November 1, 20X8 Desket, Inc.a U.S.company agreed to sell goods to a foreign buyer for 200,000 FC.The goods were to be shipped on January 31, 2024 with payment to be received on that day.
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The hedging contract, signed on November 1, 20X8, called for the sale of 200,000 FC on January 31, 2024.Assume the December 31 is fiscal year end.Exchange rates are as follows:
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Discount rate = 12%
$$\begin{array} { l c c } & \text { Spot Rate } & \text { Fwd. Rate } \\11 / 1 / \mathrm { X } 8 & \$ 0.66 & \$ 0.69 \\12 / 31 / \mathrm { X } 8 & \$ 0.67 & \$ 0.68 \\1 / 31 / \mathrm { X } 8 & \$ 0.66 & \$ 0.66\end{array}$$ ?
Required:
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Prepare all necessary entries through December 31, 20X8 for the commitment hedge and sale.Ignore Cost of Goods Sold.