On October $1,$ Year $6,$ Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of CHF$436,000.$

The contract called for the merchandise to be delivered to the customer on January $31,$ Year $7,$ with payment due on delivery. On

October $1,$ Year $6,$ Versatile arranged a forward contract to deliver CHF$436,000$ on January $31,$ Year $7,$ at a rate of CHF$1=$ $$1\mathrm{.}21.$

Versatile's year$-$end is December $31.$

The merchandise was delivered on January $31,$ Year $7,$ and CHF$436,000$ was received and delivered to the bank.

Exchange rates were as follows:

October $1,$ Year $6$

December

$31,$ Year $6$

January $31,$ Year $7$

Spot Rates

CHF$1=$ $$1\mathrm{.}19$

CHF$1=$ $$1\mathrm{.}22$

CHF$1=$ $$1\mathrm{.}20$

Forward Rates$**$

CHF$1=$ $$1\mathrm{.}21$

CHF$1=$ $$1\mathrm{.}23$

CHF$1=$ $$1\mathrm{.}20$

$**$For contracts expiring on January $31,$ Year $7.$

Required:

$($a$)$ Prepare the journal entries $($using net method$)$ that Versatile should make to record the events described assuming that the forward contract is designated as a cash flow hedge.

B$)$ prepare a partial trial balance of the accounts used as at december $31,$ year $6.$ C$)$ prepare the journal entries using net method that versatile should make to record the events described, assuming that the forward cobtract is designated as a fair value hedge.

D$)$ prepare a partial trial balance of the accounts used as at december $31,$ year $6.$