On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 100,000 rubles in four months (on January 31, 2018) and receive $39,000 in US dollars. Exchange rates for the ruble follow Date October 1, 2017 December 31, 2017 January 31, 2018 Spot Rate 0.35 0.38 0.40 Forward Rate (to January 31, 2018) 0.39 0.41 N/A Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent 0 percent per month) is 0.9901. Sharp must close its books and prepare financiai statements on December 31. al entries, assuming that Sharp entered into the forward contract as a fair value hedge of a 100,000 ruble receivable arising from a sale made on October 1, 2017 Include entries for both the sale and the forward contract b. Prepare journal entries, assuming that Sharp entered into the forward contract as a fair ue hedge of a firm commitment related to and the forward contract a 100,000 ruble sale that will be made on January 31, 2018. Include entries for ht a 100,000 ruble sale that will be made on January 31, 2018. Include entries for both the firm commitment The fair value of the firm commitment is measured by referring to changes in the forward rate