4. Use of Forward Exchange Contracts to Hedge a Firm Commitment to Receive Foreign-Currency (10 points) On October 15, our company has accepted a purchase order for inventory to be sold to a customer in Denmark for a purchase price of DKK2.5 million. The inventory is deliverable on March 31. In order to hedge the commitment to receive DKK2.5 million, we enter into a forward exchange contract on October 15 to sell DKK2.5 million on March 31 at an exchange rate of $0.14: DKK1. The contract qualifies as a fair value hedge. Assume the following exchange gates: Date Spot Rates Forward Rates October 15 $0.20:DKK1 $0.17:DKK1 December 31 $0.18:DKK1 $0.15:DKK1 March 31 $0.13:DKK1 na Prepare the journal entries to record the following: Execution of the purchase order and forward contract Adjusting entries at December 31 6. Delivery of inventory and receipt of payment from customer on March 31