On January 5, 2019, our company receives a nonbinding purchase order for sale of merchandise to a customer in Slovakia, with delivery of the merchandise scheduled for June 30, 2019. The customer preliminarily agreed to pay €650,000 for the merchandise, and payment is due from the customer upon delivery. On January 5, 2019, our company also purchases an option that gives our company the right to sell (i.e., put) €650,000 on any date until June 30, 2019 (i.e., it is an “American-style” option) for $1.28:€1 (i.e., the spot rate on January 5, 2019). On January 5, 2019, the fair value of the option (i.e., the option premium) is $19,500. In addition, our company elected to immediately include in the determination of net income all of the change in option value attributable to factors excluded from the assessment of hedge effectiveness (i.e., the non-intrinsic-value components, like time value). The relevant exchange rates and related balances for the period from January 5, 2019, to June 30, 2019, are as follows:

			Option Contract
Date	Spot Rate ($US =€1)	Sale Transaction	Fair Valuea	Change in Fair Value	Intrinsic Value	Change in Intrinsic Value	Other Sources of Value	Change in Other Value
Jan. 5, 2019	1.28		$19,500				$19,500d
Mar. 31, 2019	1.23		44,200	$24,700	$32,500b	$32,500	11,700	$(7,800)
Jun. 30, 2019	1.19	$773,500	58,500	14,300	58,500c	26,000		(11,700)

1. Derived from an option pricing model such as the Black–Scholes model
2. (€650,000 × $1.28:€1) − (€650,000 × $1.23:€1)
3. (€650,000 × $1.28:€1) − (€650,000 × $1.19:€1)
4. Fair value − intrinsic value (i.e., equals the residual fair value derived from all sources except for intrinsic value)

Prepare the journal entries to record all the adjustments required for the forecasted sale and option contract on January 5, 2019, March 31, 2019, and June 30, 2019.