On October 1^st.2019, the X Company of London, Ontario, Canada, received a purchase order to sell inventory at a sales price of US$80,000 to Y Limited of New York, USA. The goods were delivered on November 15^th.2019, with payment due on January 29^th.2020. Both companies have December 31^st. year ends. Exchange rates were as follows:-

Spot rateForward rate

October 1^st.2019US$1 = C$ 1.08..US$1 = C$1.130

November 15^th..2019.US$1 = C$ 1.09..US$1 = C$1.124

December 31^st..2019.US$1 = C$ 1.10 ..US$1 = C$1.130

January 29^th..2020..US$1 = C$ 1.12

Required:-

Assume that X entered into a forward contract as a fair value hedge of its accounts receivable balance on November 15^th. 2019, prepare all journal entries required for 2019 and January 29^th.2020(11 marks).