On August $1,20$X$4,$ True North Ltd$.,$ a Canadian company, entered into an agreement with Langdon Ltd$.,$ a foreign company, to purchase inventory for $400,000$FC$.$ The inventory is to be delivered on January $31,20$X$5.$ In accordance with the agreement, True North will make payment on February $14,20$X$5.$

On August $1,20$X$4,$ True North's bank arranged for a $400,000$FC hedge against True North's commitment to Langdon. The spot rate on August $1$ was $1$FC$=$$$2\mathrm{.}50$ CDN and the February $14,20$X$5$ forward rate was $1$FC$=$$$2\mathrm{.}542$CDN$.$

At True North's December $31,20$X$4$ year$-$end, the spot rate was $1$FC$=$$$2\mathrm{.}52$CDN and the forward rate to February $14,20$X$5$ was $1$FC$=$ $$2\mathrm{.}55$CDN$.$ When Langdon delivered the merchandise to True North on January $31,20$X$5,$ the spot rate was $1$FC$=$$$2\mathrm{.}54$CDN and the forward rate was $1$FC$=$$$2\mathrm{.}56$CDN$.$ True North paid Langdon on February $14,$ as required. On that date, the spot rate was $1$FC$=$$$2\mathrm{.}565$ CDN$.$

Required:

The hedge arranged by True North is a cash hedge. Prepare the journal entries to record the acquisition of the inventory and the related hedge through to February $14,20$X$5,$ using the gross method.