Forward exchange contract designated as a fair value hedge of a foreign$-$currency$-$ denominated firm commitment to sell inventory, weakening $ US

Our U$.$S$.-$based company enters into a "firm commitment" with a France$-$based retailer on October $31,2021.$ The firm commitment requires our company to sell $140,000$

units of an inventory item costing $9$ each to the French company. Our company is contractually committed to ship the inventory $($i$.$e$.,$ title transfers$)$ on January $31,$

$2022,$ with payment in Euros on the same date. Our company does recurring business with the French company, and the firm commitment includes significant

monetary penalties for nonperformance. Also assume, on October $31,2021,$ our company enters into a contract with a foreign currency exchange broker to sell Euros

$($for settlement on January $31,2022)$ to mitigate the risk of exchange rate fluctuation. Our company's functional currency is the $ US$,$ and our forward exchange contract

qualifies as a fair value hedge. The relevant exchange rates and related balances for the period from October $31,2021,$ to January $31,2022,$ are as follows:

a For settlement on January $31,2022$

b We ignore discounting in the computation of fair values.

Required:

a$.$ Prepare the journal entries to record the sale and all adjustments required for the firm commitment and forward contract at October $31,2021,$ December $31,2021,$

and January $31,2022.$

b$.$ Reconcile to the forward rate at the forward contract's inception and the net cash received for both the sale of goods and the settlement of the forward$-$contract

derivative.

c$.$ What amount of sales was recognized in the quarter ending December $31,2021?$ What amount of sales was recognized in the quarter ending March $31,2022($i$.$e$.,$ the

reporting period including the sale date$)?$