For Journal entries:

1) Record the sales agreement.

2) Record entry for forward contract entered into by Mertag Company.

3) Record the forward contract and recognize the change in fair value.

4) Record the firm commitment and recognize the change in fair value.

5) Record the entry to adjust the fair value of the forward contract.

6) Record the entry to adjust the fair value of the firm commitment.

7) Record the sale and receipt of PLN.

8) Record settlement of forward contract.

9) Record entry to close the firm commitment.

On October 1, 2020, Mertag Company (a U.S.-based company) recelves an order from a customer In Poland to deliver goods on January 31, 2021, for a price of 1,030,000 Polish zlotys (PLN). Mertag enters Into a forward contract on October 1, 2020, to sell PLN 1,030,000 in four months (on January 31, 2021). U.S. dollar-Polish zloty exchange rates are as follows: Mertag designates the forward contract as a fair value hedge of a foreign currency firm commitment. The falr value of the firm commitment is measured by referring to changes in the forward rate, and, therefore, forward points are included in assessing hedge effectiveness. Mertag must close Its books and prepare financlal statements on December 31 . Discounting to present value can be Ignored. a. Prepare journal entrles for the foreign currency forward contract, foreign currency firm commitment, and export sale. b. Determine the net benefit, If any, realized by Mertag from entering Into the forward contract. Complete this question by entering your answers in the tabs below. Determine the net benefit, if any, realized by Mertag from entering into the forward contract. (Do not round intermediate calculations. Negative amount should be entered with a minus sign.)