On November 1, 2017, Kratz Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of 250,000 foreign currency units (FCU). On November 1, Kratz also entered into a forward contract to hedge the exposed asset. The forward rate is $0.90 per unit of foreign currency. Kratz has a December 31 fiscal year-end. Spot rates on relevant dates were: Date Per Unit of Foreign Currency November 1 $0.93 December 31 0.91 March 1 0.94 The entry to record the forward contract is FCU Receivable, 225,000; Premium on Forward Contract, 7,500; Dollars Payable, 232,500 Dollars Receivable, 232,500; Discount on Forward Contract, 7,500; FCU Payable, 225,000 FCU Receivable, 232,500; Discount on Forward Contract, 7,500; Dollars Payable, 225,000 Dollars Receivable, 225,000; Discount on Forward Contract, 7,500; FCU Payable, 232,500