On October $1,2023,$ Mertag Company $($a U$.$S$.-$based company$)$ recelves an order from a customer in Poland to dellver goods on January $31,2024,$ for a price of $1,014,000$ Polish zlotys $($PLN$).$ Mertag enters into a forward contract on October $1,2023,$ to sell PLN $1,014,000$ in four months $($on January $31,2024).$ U$.$S$.$ dollar$-$Polish zloty exchange rates are as follows:

$\backslash$table$[[$Date$,$Spot Rate,$\backslash$table$[[$Forward Rate $($to$],[$January $31,2024)]]],[$October $1,2023,$$$9\mathrm{.}28,$$$0\mathrm{.}32],[$December $31,2023,0\mathrm{.}31,0\mathrm{.}35],[$January $31,2024,0\mathrm{.}33,$N$/$A$]]$

Mertag designates the forward contract as a falr value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate and, therefore, forward points are included in assessing hedge effectiveness. Mertag must close its books and prepare financlal statements on December $31.$ Discounting to present value can be Ignored.

Required:

a$.$ Prepare Journal entrles for the forelgn currency forward contract, foreign currency firm commitment, and export sale.

b$.$ Determine the net benefit, If any, realized by Mertag from entering into the forward contract.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale.

Note: Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,10/01/2023,$No Journal Entry Required,O$,,],[2,10/01/2023,$No Journal Entry Required,$\backslash$theta $,,],[3,12/31/2023,$Foreign Exchange Gain or Loss,$\backslash$theta $,30,420\backslash$theta $,],[,,$Forward Contract,$\backslash$theta $,,30,420],[4,12/31/2023,$Firm Commitment,$0,30,420,],[,,$Foreign Exchange Gain or Loss,$\backslash$theta $,,30,420$@$],[5,01/31/2024,$Forward Contract,$0,15,210$x$,],[,,$Foreign Exchange Gain or Loss,$\backslash$theta $,,15,210*],[6,01/31/2024,$Foreign Exchange Gain or Loss,$0,15,210$x$,],[,,$Firm Commitment,$0,,15,210],[7,01/31/2024,$Foreign Currency $($PLN$),0,334,620,],[,,$Sales,$\backslash$theta $,,334,6200],[8,01/31/2024,$Cash,$0,319,410\backslash$times $,],[,,$Forward Contract,$\backslash$theta $,15,210\backslash$Theta $,],[,,$Foreign Currency $($PLN$),0,,334,620]]$