Belsen purchased inventory on December 1, 2017. Payment of 100,000 stickles ()was to be made in sixty days. Also on December 1, Belsen signed a contract to purchase 100,000 in sixty days. The spot rate was 1 =$0.35714, and the 60-day forward rate was 1 = $0.38462. On December 31, the spot rate was 1 = $0.34483 and the 30-day forward rate was 1 = $0.38168. Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901. In the journal entry to record the establishment of a forward exchange contract, at what amount should the Forward Contract account be recorded on December 1. Write the journal entries for Dec 1 and Dec 31 assume this hedge is designated as a fair value hedge and the financial year ends on Dec 31.