International Distributors, Inc., a U.S. company, is active in the import/export business. An analysis of International's receivables, payables, and other assets (liabilities) prior to adjustment at December 31, 2017, disclosed the following:

Relevant exchange rates (\($/FC)\) for the above currencies at December 31, 2017, are:

Required

a. Prepare a schedule to compute the exchange gain or loss recognized by International Distributors in 2017. Record the needed adjusting entries.

b. Comment on the hedge effectiveness of the two forward contracts.

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Receivables U.S. customers.. Belgian customers (300,000 euros) Indian customers (1,200,000 rupees). Saudi Arabian customers (90,000 riyal). Total receivables.... Payables U.S. suppliers... Japanese suppliers (1,000,000 yen). Mexican suppliers (500,000 pesos). Total payables Other current assets (liabilities) Investment in forward purchase contract (for delivery of 500,000 pesos in 30 days at $0.0756).. Investment in forward sale contract (for delivery of 300,000 euros in 60 days at $1.2785) Total other current assets (liabilities). $ 100,000 385,000 19,500 24,000 $ 528,500 $ (60,000) (9,000) (38,120) $(107,120) (525) 480 (45)