On December 1, 20x1 Pimlico made sales to a customer in India and recorded Accounts Receivable of 10,000,000 rupees. The customer has until March 1, 20x2 to pay. On December 1, 20x1, Pimlico paid $500 for a put option to sell rupees at a strike price of $2.30 per 100 rupees on March 1, 20x2, which was the spot rate on December 1, 20x1. On December 31, 20x1, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees. At March 1, 20x2 the exchange rate was $2.45 per 100 rupees. The company treats the transaction as a cash flow hedge. The discount factor corresponding to the company's incremental borrowing is 0.95. Record all journal entries necessary at 12/1/x1, 12/31/x1 and 3/1/x2