On June $1,$ Parker$-$Mae Corporation $($a U$.$S$.-$based company$)$ received an order to sell goods to a foreign customer at a price of $205,000$ francs. Parker$-$Mae will ship the goods and receive payment in three months, on September $1.$ On June $1,$ Parker$-$Mae purchased an option to sell $205,000$ francs in three months at a strike price of $$0\mathrm{.}89.$ The company designated the option as a fair value hedge of a foreign currency firm commitment. The option's time value is excluded in assessing hedge effectiveness, and the change in time value is recognized in net income. The fair value of the firm commitment is measured by referring to changes in the spot rate $($discounting to present value is ignored$).$ Relevant exchange rates and option premiums for the franc are as follows: $($PLEASE REFER TO PICTURE ATTACHED$)$

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Parker$-$Mae Corporation must close its books and prepare its second$-$quarter financial statements on June $30.$

$*$ Prepare journal entries for the foreign currency option, foreign currency firm commitment, and export sale.

$*$ What is the impact on net income in each of the two accounting periods?

$*$ What is the amount of net cash inflow resulting from the sale of goods to the foreign customer?

PLEASE RECORD THE FOLLOWING JOURNAL ENTRIES

$1.06/01-$ Record the purchase of the foreign currency option.

$2.06/01-$ Record entry for receipt of an order to sell merchandise to foreign customer.

$3.06/30-$ Record gain or loss on the firm commitment.

$4.06/30-$ Record gain or loss on the foreign currency option.

$5.09/01-$ Record gain or loss on the firm commitment.

$6.09/01-$ Record gain or loss on the foreign currency option.

$7.09/01-$ Record the sale.

$8.09/01-$ Record the exercise of the foreign currency option.

$9.09/01-$ Record entry to close the firm commitment.