On November 1, 2020, Davis Corp (a U.S. based Company) sold goods to a foreign customer at a price of 1,500,000 Euros and will received payment on April 30, 2021. On November 1, Davis enters into a forward contract to sell 1,500,000 Euros on April 30, 2021. The forward points on the forward contract are excluded in assessing the hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the Euro on various dates are as follows: Date Spot Rate Forward Rate (to April 30, 2021) 11/1/2020 $ 1.21 $1.202 12/31/2020 $ 1.19 $1.184 5/1/2021 $ 1.185 N/A Assuming that Davis designates the forward contract as a cash flow hedge of a foreign currency receivable a) prepare the journal entries for the sale and forward contract in U.S. dollars at November 1, 2020, December 31, 2020 and at April 30, 2021. b) What is the impact of the above transactions on 2020 net income? c) what is the impact of the above transactions on 2021 net income?