P 13-5 Foreign currency hedge, existing receivable On January 1, 2017, Song delivers merchandise to Prabu for 250,000,000 Indonesian rupiah when the spot rate for the rupiah is 0.39 rupiah. The receivable is due on February 28, 2017. In addition, on January 1, Song enters into a 60-day forward contract to hedge its foreign currency assets at a forward rate of 0.37 rupiah. The spot rate for the rupiah on 28 February 2017 is 0.35 rupiah.

REQuIRED 1. Prepare journal entries to record the receivable from the sales transaction and the forward contract on January 1.