On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 190,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 190,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Date November 1, 2017 December 31, 2017 April 30, 2018 Spot Rate $ 0.30 0.28 0.27 Forward Rate (to April 30, 2018) $ 0.29 0.26 N/A Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610. a. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. b. What is the impact on net income in 2017? c. What is the impact on net income in 2018? Complete this question by entering your answers in the tabs below. Req A Req B and C 1 11/01/2017 Accounts receivable (FCU) 57,000 Sales 57,000 3 12/31/2017 3,800 Foreign exchange loss Accounts receivable (FCU) 3,800 4 12/31/2017 5,478 Forward contract Accumulated other comprehensive income 5,478 5 12/31/2017 3,800 Accumulated other comprehensive income Gain on forward contract 3,800 6 12/31/2017 Discount expense 633 Accumulated other comprehensive income 633 7 04/30/2018 1,900 Foreign exchange loss Accounts receivable (FCU) 1,900 8 04/30/2018 1,678 Accumulated other comprehensive income Forward contract 1,678 9 04/30/2018 1,900 Accumulated other comprehensive income Gain on forward contract 1,900 10 04/30/2018 Discount expense 1,267 Accumulated other comprehensive income 1,267 11 04/30/2018 51,300 Foreign currency (FCU) Accounts receivable (FCU) 51,300 Complete this question by entering your answers in the Req A Req B and C b. What is the impact on net income in 2017? c. What is the impact on net income in 2018? (In case of negative impact on net income, answer should calculations. Round your final answers to 2 decimal places b. Impact on net income in 2017 Impact on net income in 2018 C