On December 1, 2020, Star Incorporated, a U.S. company, sells parts to a French company, with payment of 100,000 Euros to be received on March 1, 2021. On December 1, St acquired an option to sell 100,000 Euros in three months at a strike price of $1.28. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Relevant exchange rates and option premia for the Euro are as follows: Star must close its books and prepare financial statements at December 31. Assuming that Star designates the option as a cash flow hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars on 12/1/2020, 12/31/2020, and 3/1/2021
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