On November 16, 2020, Raleigh Company sells inventory to a customer in Switzerland, with the account receivable due in Swiss Francs (CHF). The receivable is CHF 850,000 and the exchange rate on the date of sale is $1.16:CHF1. Payment is due in 60 days. Raleigh feels that the $US has been over-sold and is likely to rebound during the next 60 days, thus lowering the $US equivalent of the receivable. The current forward price for 60-day delivery of $1.13 reflects our view and we purchase a forward contract to sell Swiss Francs at $1.10 for Jan. 15, 2021. When the receivable is collected in 60 days, the exchange rate at that date is $1.06: CHF1.

Assume the following data relating to the spot and forward rates for the $US vis--vis the Euro:

	Spot Rate	Forward rate (for 1/15/21)
November 16, 2020	$1.16:CHF1	$1.13 : CHF1
December 31, 2020	$1.11 : CHF1	$1.08 : CHF1
January 15, 2021	$1.06: CHF1	$1.06: CHF1

Prepare the journal entries to record the following:

1. Account receivable and sale (cost of goods sold was $450,000 USD)
2. Adjusting entry on Dec. 31, 2020
3. Collection of the account receivable on 1/15/21