On November 1, 2020 ABC Company (ABC), the U.S. based company forecasts the purchase of goods from a foreign supplier for 100,000 yuan.ABC expects to receive the goods on April 20, 2021, and make immediate payment.On November 1, 2020, ABC enters into a six-month forward contract to buy 100,000 yuan.The company properly designates the forward contract as a cash flow hedge of a forecasted foreign currency transaction.Forward points are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis over the life of the contract.The following U.S. dollarYuan exchange rates apply:

Date Spot Rate Forward Rate to April 30, 2021

November 1, 2020 $0.21 $0.195

December 31, 2020 $0.19 $0.170

April 30, 2021 $0.18 N/A

As expected, ABC receives the goods from the supplier on April 30, 2021 and pays 100,000 yuan immediately.ABC sells the imported goods in the local market in May 2021.

Required:

Show all journal entries and memoranda related to the foreign currency forward contract, purchase, and sale from November 2020 to May 2021.