Drama Industries is a Canadian company that sells products to countries internationally. On December 1, 20X8, Drama sold 10,000 units of product to a wholesaler in a foreign country at a total cost of 600,000 foreign currency units (FCUs). At that time, the spot rate was FCU1 = C$0.741. The invoice terms required payment by April 1, 20X9. On December 3, 20X8, Drama decided to enter into a forward contract with a bank at the 120-day forward rate of FCU1 = C$0.781. Hedge accounting is not applied.

Dramas fiscal year end is December 31 and, on this date, in 20X8, the spot rate was FCU1 = C$0.757 and the forward rate was FCU1 = C$0.791. The customer made its payment to Drama on April 1, 20X9 when the spot rate was FCU1 = C$0.802.

Required: Prepare Dramas entries to record the following (Note: you may use the gross or net method to account for the forward contract.)

(i) the sale and the forward contract

(ii) adjustments required on December 31, 20X8

(iii) entries required on April 1, 20X9