On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in Poland to deliver goods on January 31, 2021, for a price of 1,040,000 Polish zloty (PLN). Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,040,000 in four months (on January 31, 2021). U.S. dollar-Polish zloty exchange rates are as follows: Date October 1, 2020 December 31, 2020 January 31, 2021 Spot Rate $ 0.25 0.28 0.30 Forward Rate (to January 31, 2021) $ 0.29 0.32 N/A Mertag designates the forward contract as a fair 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 financial statements on December 31. Discounting to present value can be ignored. a. Prepare journal entries for the foreign 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list EX 1 Record the sales agreement. 2 Record entry for forward contract entered into by Mertag Company. 3 Record the forward contract and recognize the change in fair value. 4 rd the firm commitment and recognize the change in fair value. 5 Record the entry to adjust the fair value of the forward contract. 6 Record the entry to adjust the fair value of the firm Note : = journal entry has been entered Record entry Clear entry EX 4 Record the firm commitment and recognize the change in fair value. 5 Record the entry to adjust the fair value of the forward contract. 6 Record the entry to adjust the fair value of the firm commitment. 7 Record the sale and receipt of PLN. 8 Record settlement of forward contract. 9 Record entry to close the firm commitment. Note : = journal entry has been entered Record entry Clear entry Mertag designates the forward contract as a fair 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 financial statements on December 31. Discounting to present value can be ignored. a. Prepare journal entries for the foreign 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. Complete this question by entering your answers in the tabs below. Required A Required B Determine the net benefit, if any, realized by Mertag from entering into the forward contract. (Do not round intermediate calculations. Negative amount should be entered with a minus sign.) Net benefit