On November 1st 2017 The USA Company sold merchandise to the Paris Company for 1,000,000 Euros when the Euro was worth $1.

The Paris Company will pay for the merchandise on May 1, 2018

On November 1st The USA Company took out a forward contract to sell 1,000,000 Euros on May 1 2018 for $1.09 each

The USA Company borrows at 12% and the present value of a dollar at 12% is .94340

On December 31, the Euro was worth $1.04

On May 1 the Euro was worth $1.15

On May 1, Paris Company paid USA Company and USA Company turned over the Euros to its bank to satisfy its forward contract

Required: Make the necessary journal entries of the USA Company beginning with the sale of the merchandise and ending with the transfer of the Euros to their bank in exchange for the dollars to satisfy the forward contract.