On October $1,2019,$ Jarvis Co$.$ made a credit sale to a foreign customer for $100,000$LCU $($a foreign currency$).$ The payment is to be collected on Feb. $1,2020.$ A forward exchange contract was acquired on Oct. $1,2019$ whereby Jarvis Co$.$ was to pay $100,000$ LCU and receive $$78,000$ in U$.$S$.$ dollars on February $1,2020.$ The company's borrowing rate is $12\%.$ The present value factor for one month is $0\mathrm{.}9901.$

Required:

Assuming this is a fair value hedge, calculate the relevant numbers and prepare journal entries for the accounts receivable of this sales transaction and forward contract on Oct. $1,2019,$ Dec. $31,2019($fiscal year end$),$ and Feb. $1,2020.$ Assume that the forward contract premium$/$discount is to be amortized using the straight$-$line method.

The spot and forward rates for the LCU were as follows:

$\backslash$table$[[$Date$,$Spot Rate,$\backslash$table$[[$Forward rate for$],[$Feb$.1,2020]],\backslash$table$[[$Dollar amount$],[$for $100,000],[$LCU based on$],[$Spot Rate$]],\backslash$table$[[$Dollar amount$],[$for $100,000],[$LCU based on$],[$Forward Rate$]]],[10/1/2019,$$$\mathrm{.}83=1$LCU,$$\mathrm{.}78=1$LCU,,$],[12/31/2019,$$$85=1$LCU,$$\mathrm{.}80=1$LCU,,$],[2/1/2020,$$$86=1$LCU,$$\mathrm{.}86=1$LCU,,$]]$