Kinetico Inc. sells parts to a foreign customer on February 1, 2015, with payment of 40,000 to be received on May 1, 2015. Kinetico enters into forward contract on February 1, 2015 to sell 40,000 on May 1, 2015. Relevant exchange rates for the euro on various dates are follows.

2/1/2015 3/31/2015 5/1/2015

Spot Rate $1.20 $1.25 $1.22

90-day Forward Rate $1.24

30-day Forward Rate $1.27

Kinetico must close its books and prepare financial statements on March 31.

Required:Record the journal entries for the foreign currency transaction and forward contract on 2/1/2015, 3/31/2015, and 5/1/2015.