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2. Foreign Exchange Entries - Hedge Carter, a US based company, sold goods to a customer in Thailand for 3,000,000 Thailand baht on December 1,
2. Foreign Exchange Entries - Hedge Carter, a US based company, sold goods to a customer in Thailand for 3,000,000 Thailand baht on December 1, 2020. On that date. Carter entered into a forward contract with a foreign currency dealer. On February 1, 2021. Carter sold the 3,000,000 baht to the foreign currency dealer after receiving it from the Thailand customer. The rates for Thailand baht were: Spot Forward December 1, 2020 $.0634 $.0622 December 31, 2020 $.0620 $.0608 February 1, 2021 $.0644 A) Prepare the journal entries on December 1, 2020 to record 1. The sale of goods to the Thailand customer. 2. The agreement to enter into the forward contract. B) Prepare the journal entries on December 31 I2020 to record 1. Any foreign exchange gain or loss from the sale of goods to the customer 2. Any gain or loss from the forward contract. C) Prepare the journal entries on February 1, 2021 to record L Any foreign exchange gain or loss from the sale of goods to the customer. 2. Any gain or loss from the forward contract. 3. The receipt of the 3.000.000 baht from the customer 4. The payment of the baht to the exchange dealer and the receipt of cash from the dealer
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