On May $1,$ our company buys inventory from a vendor in France for $990,000.$ The exchange rate on the

date of purchase is $$1\mathrm{.}32$:$1,$ therefore the invoice is written for $$1,306,800,$ and payment is due July $31.$

To mitigate the risk of exchange rate fluctuations between the purchase date and date of payment,

our company enters into a forward contract with an exchange broker. Regarding this contract, our company

will buy $($receive$)990,000$ on July $31$ with a locked in forward rate of $$1\mathrm{.}29$:$1.$

The data below relates the spot and forward rates for the $US and the Euro:

Please prepare journal entries for both the accounts payable and purchase and the forward contract for

May $1,$ June $30,$ and July $31.$