Give the journal entries assuming the forward contract is a:

a. cash flow hedge

b. Fair value hedge

On December 2014, Scott inventory to N na Inc. for 30,000f. The payment is due on January 30, 2015. To protect his asset, he entered into a forward contract the 30,000f and receive US currency. The relevant balances on the relevant dates to deliver are Date Spot rate Forward rate to March 1, 2015 12/1/14 $1.32 $1.305 12/31/14 1.33 1.316 1.30 1.30 Required: Give the journal entries assuming the forward contract is a a. Cash Flow hedge b. Fair value hedge