Hedged Sale Commitment and Exposed AssetPosition

On June 25, 2020, GlobalAgra Inc., a U.S. company, received apurchase order from a Swiss customer for delivery of merchandise onJuly 10, 2020, at a price of CHF10,000,000, payable in Swiss francs(CHF) on September 10, 2020. To hedge its exposure to exchange ratechanges, on June 25, 2020, GlobalAgra entered a forward contractfor delivery of CHF10,000,000 to the broker on September 10, 2020.The merchandise was delivered as scheduled. On September 10, 2020,GlobalAgra received payment from the customer, and delivered theSwiss francs to the broker to close the forward contract.GlobalAgra’s accounting year ends December 31. Exchange rates ($/CHF) are as follows:

	Spot rate		Forward rate for delivery September 10, 2020
June 25, 2020	$1.0506		$1.0507
July 10, 2020	1.0510		1.0511
September 10, 2020	1.0512		--

Required

Prepare the journal entries GlobalAgra made on July 10, 2020,and September 10, 2020, to record the above transactions.

Date	Description		Debit	Credit
7/10/20			Answer	Answer
			Answer	Answer
	To record change in fair value of the forward contract.
			Answer	Answer
			Answer	Answer
	To record gain or loss on U.S. dollar value of the firmcommitment.
			Answer	Answer
			Answer	Answer
	To record delivery of goods to the customer.
			Answer	Answer
			Answer	Answer
	To adjust sales revenue for the change in value of the firmcommitment.
9/10/20			Answer	Answer
			Answer	Answer
	To record gain or loss on accounts receivable.
			Answer	Answer
			Answer	Answer
	To record change in fair value of the forward contract.
			Answer	Answer
			Answer	Answer
	To record receipt of Swiss francs from the U.K. customer.
	Cash		Answer	Answer
			Answer	Answer
			Answer	Answer
	To record delivery of the currency to the dealer, andsettlement of the forward contract.