a us company took delivery from a canadian firm of inventory costing 500,000. concurrently the company entered into a forward contract

ACCT4300 Advanced Accounting II Group Test 2 Part I: (Foreign Currency Transaction) On 10/17/2017, A U.S. company (which has a 12/31 year-end) took delivery from a Canadian firm of inventory costing C$500,000. Payment is due in 90 days. Concurrently the company entered into a forward contract to buy C$500,000 in 90 days at 1 CS $1.05. Direct exchange rates for CS on the respective dates are as follows: Date 10/17/2017 12/31/2017 Spot Rate 1.04 1.08 /15/2018 1.01 Forward Rate (Delivery on 1/15/2018 1.05 1.07 Required: Prepare all entries related to this transaction, assuming that the payment was made on 1/15/2018