On September 1, 2017, American Metals Distribution (AMD) has an inventory of 5,000 pounds of copper that it plans to sell on the spot market in three months. The inven- tory is carried at cost, and was purchased on the spot market at \($3.25/lb.\) To hedge against a decline in market price, AMD invests in put options on 5,000 pounds of copper, expiring December 1, at a strike price of \($3.20/1b,\) which is the current spot price. AMD pays \($800\) for the options, and designates the change in intrinsic value as the hedge. On November 1, 2017, the spot price is \($3.18/1b,\) and AMD sells the options for \($300.\) On December 16, 2017, AMD sells its inventory at the then-current spot price of \($3.15/lb. \)

Required 

Prepare AMD's journal entries to record the events of September 1, November 1, and December 16, 2017. AMD's accounting year ends December 31.