On January 1, 2011, Jessica Marie Company sold equipment to Gwang Ju Company for 20,000,000 Korean won, with payment to be received in two years on January 1, 2013. The exchange rate on January 1, 2011, is 800 won = $1. On the same date, Jessica Marie enters into a futures contract and agrees to sell 20,000,000 won on January 1, 2013, at the rate of 800 won = $1. On December 31, 2011, the exchange rate is 790 won = $1. On December 31, 2012, the exchange rate is 830 won = $1. The appropriate discount rate throughout this period is 10%. Instructions:

Make all journal entries necessary on Jessica Marie’s books in 2011, 2012, and 2013 to record this sale, the futures contract, and the collection of the receivable. For purposes of estimating future settlement payments under the futures contract, assume that the current exchange rate is the best forecast of the future exchange rate. (Note: Don’t forget to record the receivable at its present value.)