Hedged Forecasted Sale
Bectel, Inc. expects to sell merchandise for C$1,000,000 to a Canadian customer at the end of November, 2020. In anticipation of this forecasted transaction, on August 30, 2020, Bectel sold C$1,000,000 forward for delivery on November 30, 2020. Bectel made the sale as expected on November 30, and settled the forward contract. Relevant exchange rates ($/C$) are as follows:
	Spot rate	Forward rate for delivery November 30, 2020
August 30, 2020	$0.73	$0.77
November 30, 2020	0.78	--
Required
Prepare the journal entries made by Bectel on November 30 concerning the above events. Assume Bectel is a calendar-year company
Description		Debit	Credit
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
To record change in value of forward contract.
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
To record merchandise sale.
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
To reclassify the gain or loss on the hedge to current earnings.
CASH		?	?
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
Forgein Currency OR Invest Forward CUrrency OR Other Income OR Sales Rev		?	?
To record settlement of forward contract.