Hedging a Forecasted Sale Transaction On December 10, 2023, Daisy Foods, a U.S. company, anticipates sales in the amount of A$25,000,000 to an Australian customer, payment in Australian dollars to be received at the end of May 2024. On December 10, 2023, Daisy Foods enters a forward contract for the sale of A$25,000,000 for a total price of $19,597,500 on May 31, 2024. The forward contract qualifies as a hedge of the forecasted sale. On March 1, 2024, Daisy delivered the merchandise to the Australian customer. On May 31, 2024, Daisy received A$25,000,000 from the customer, and delivered it to the broker to close the forward contract. Daisy Foods' accounting year ends January 31. Relevant exchange rates ($/A$) are as follows: Forward rate for delivery Spot rate May 31, 2024 December 10, 2023 $ 0.7841 $ 0,7839 January 31, 2024 0.7832 0.7830 March 1, 2024 0.7798 0.7796 May 31, 2024 0.7750 Prepare the journal entries to record the above events, including January 31, 2024 adjusting entries. General Journal Date Description Debit Credit 01/31/24 To record change in value of forward contract 03/01/24 To record change in value of forward sale contract. To record delivery of merchandise. To reclassify accumulated other comprehensive income. 05/31/24 To adjust accounts receivable. To record change in value of forward contract. To record payment from the customer. Investment in forward contract To record settlement of the forward contract