On October 1, 2020 Bayou Industries, a U.S. corporation, sold equipment to a German company for 600,000 euros, receivable in 5 months. On October 1, Bayou Industries entered into a forward contract to deliver euros on February 28, 2021. The relevant exchange rates between the USD and euros are given:

	USD/EUR Spot rate	USD/EUR Forward rate (to February 28, 2021)
October 1, 2020	1.2073	1.2101
December 31, 2020	1.2216	1.2250
February 28, 2021	1.2051

The company's incremental borrowing rate provides a discount rate of 0.9901 for two months. Bayou designates the forward contract as a cash flow hedge of the foreign currency receivable, and assesses hedge effectiveness based on changes in forward rates.

On the following page, prepare the required journal entries. Date the entries.