nces On October 1, Year 6, Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of CHF448,000. The contract called for the merchandise to be delivered to the customer on January 31, Year 7, with payment due on delivery. On October 1, Year 6. Versatile arranged a forward contract to deliver CHF448,000 on January 31, Year 7, at a rate of CHF1-$2.21 Versatile's year-end is December 31. The merchandise was delivered on January 31, Year 7, and CHF448,000 were received and delivered to the bank Exchange rates were as follows: October 1, Year 6 December 31, Year 6 January 31, Year 7 Spot Rotes CHIP - 12.19 CH - $2.22 **For contracts expiring on January 31, Year 7 Required: Forward RotesAtt (a) Prepare the journal entries (using net method) that Versatile should make to record the events described assuming that the forward contract is designated as a cash flow hedge. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank- be certain to enter "O" wherever required.) Date October 1, Year 6:1 General Journal Receivable from bank Forward contract Record the forward contract. December 31, Year 6 Other comprehensive income Forward contract Debit 990080 Credit 990080 8960 8960 < Prev 2 of 2 Next