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

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