On September 1. Westbrook Corporation purchased goods from a foreign supplier at a price of 1,000,000 francs and will make payment in three months on December 1. On September 1. Westbrook acquired an option to purchase 1,000,000 francs in three months at a strike price of $0.852. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Relevant exchange rates and option premia for the franc are as follows: Westbrook must close its books and prepare its third-quarter financial statements on September 30. The goods purchased on September 1 are sold in December. Assuming that Westbrook designates the foreign currency option as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and related hedge in U.S. dollars. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entrv worksheet 1 Record the purchase of goods. 2 Record the purchase of the foreign currency option. 3 Record the entry to adjust the value of the foreign currency accounts payable. 4 Record the change in the fair value of the option. 5 Record the foreign exchange gain or loss on the foreign currency option. 6 Record the change in the time value of the foreign currency option. 7 Record the entry to adjust the value of the foreign currency accounts payable. 8 Record the change in the fair value of the option. 9 Record the foreign exchange gain or loss on the foreign currency option. 10 Record the change in the time value of the foreign currency option. 11 Record the exercise of the option. 12 Record the payment to the foreign supplier. 13 Record the entry to transfer the carrying value of inventory at the time of sale