Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 32,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 32,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows:

Date	Spot Rate	Forward Rate (to March 1,2016)
December 1,2015	$4.30	$4.375
December 31, 2015	4.40	4.500
March 1, 2016	4.55	N/A

Brandlins incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31.

a. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars.