Willson Leather Company, a calendar-year company, purchases merchandise from an Italian supplier on a regular basis. On November 1, 2016, Willson purchased € 10,000,000 for delivery on March 1, 2017, in anticipation of an expected purchase of merchandise. The forward purchase qualifies as a cash flow hedge. On January 15, 2017, Willson issued a purchase order for € 10,000,000 in merchandise, establishing a firm commitment. The merchandise was received on February 1, 2017. On March 1, 2017, Willson closed the forward and paid the supplier. On March 15, the merchandise was sold to a U.S. customer for \($25,000,000.\) Exchange rates (\($/€)\) are as follows:

Required 

Prepare the journal entries to record the above events. Assume Willson records cost of goods sold at the time of sale.

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November 1, 2016. December 31, 2016 January 15, 2017 February 1, 2017 March 1, 2017.. Spot rate Forward rate for delivery March 1, 2017 $1.41 $1.38 1.39 1.42 1.40 1.43 1.43 1.45 1.45