On November 1, 2016, a U.S. company purchased inventory from a foreign supplier for 100,000 FC, with payment to be made on January 31, 2017, in FC. To hedge against fluctuations in exchange rates, the firm entered into a forward exchange contract on November 1 to purchase 100,000 FC on January 31, 2017. The U.S. firm has a December 31 year end for accounting purposes. The following exchange rates may apply:

Date	Spot Rate	Fwd. Rate
11/1/16	$0.15	$0.13
12/31/16	$0.16	$0.14
1/31/17	$0.165	$0.165

Discount rate = 12%

Required:

Make all the necessary journal entries for the U.S. firm relative to these events occurring between November 1, 2016, and January 31, 2017.