On 11/1/2017, a company forecasted the sales of inventory to foreign customer for 800,000 FCU. It was estimated that the inventory would be delivered and paid on 3/20/2018. Also, on 11/1/2017 , the company purchased a put option to sell 800,000 FCU at a strike price of $0.842 expiring end of 2018. An option premium of $5,000 was paid.

	1-Nov	31-Dec	20-Mar
Spot Rates	$0.820	$0.835	$0.830
FV of Option	$5,000	$4,200

Required: Prepare the journal entries required on the dates listed:

1. Assuming that on 3/20/2018 the option was exercised, and the inventory delivered and paid

2. Assuming that the spot rate on 3/20/2018 is $0.845?