Nance Company sold inventory on October 1, 2017 to a foreign customer for 850,000 units of foreign currency (FC) due on January 31, 2018. Simultaneously, the company entered into a forward contract to sell 850,000 units of FC on January 31, 2018 at the forward rate of $.75. Payment was received from the foreign customer on January 31, 2018. The company ends its fiscal year on December 31. The following exchange rates were quoted:

		Forward Rate
Date	Spot Rate	(Delivery on 1/31/2018)
10/1/2017	0.72	0.75
12/31/2017	0.73	0.79
1/31/2018	0.76

(Reminder: To avoid confusion as explained in class, only use the following accounts to make journal entries for foreign currency transactions: Inventory, Sales, Cash, Machine, Equipment, A/Payable (FC), A/Receivable (FC), Exchange G/L, Fwd Contract, Contract G/L, Contract G/L-OCI, Firm Commitment, Commitment G/L, Option, Option G/L, Option G/L-OCI.)

Required:

A. Prepare all journal entries relative to the above to be made by Nance on October 1, 2017.

B. Prepare all journal entries relative to the above to be made by Nance on December 31, 2017.

C. Prepare all journal entries relative to the above to be made by Nance on January 31, 2018.