On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.43 per Norwegian krone, Derby enters into a forward contract to purchase 567,500 Norwegian kroner at a three-month forward rate of $0.44. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.436 per Norwegian krone, Derby orders and receives the merchandise, paying 567,500 kroner. The merchandise is sold within 30 days. Required: a-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge. a-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold? b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Prepare all journal entries for Derby Corporation related to this transaction and hedge. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Req A1 Req A2 Req B Prepare all journal entries for Derby Corporation related to this transaction and hedge. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. No Date General Journal 1 03/01 No Journal Entry Required 2 05/31 Other Comprehensive Income (OCI) Forward Contract Debit Credit 2,270 2,270 3 05/31 Cost of Goods Sold 5,675 Other Comprehensive Income (OCI) 5,675 Other Comprehensive Income (OCI) 4 05/31 Foreign Currency (NOK) Forward Contract Cash 247,430 5,675 5 05/31 Inventory 247,430 Foreign Currency (NOK) 247,430 6 05/31 Cost of Goods Sold Inventory 247,430 247,430 7 05/31 Accumulated Other Comprehensive Income (AOCI) Cost of Goods Sold