Our firm sold equipment to a company in France for $300,000$ on December $1,$ Year $6.$ Our year end is December $31,$ and the receivable is due on February $28,$ Year $7.$ On December $1,$ Year $6,$ we entered into a forward exchange contract with the bank to provide them with $300,000$ on February $28,$ Year $7,$ in return for Canadian dollars at a forward rate of $$Euro $1=$ CDN $$1\mathrm{.}46.$ This is classified as a fair value hedge.

The following rates were in effect:

Forward Rates:$=$December $1,$ Year $6$; $90$ day forward rate $1=$ CDN$ $1\mathrm{.}46$

$1$ CDN$ $1\mathrm{.}46$

December $31,$ Year $6$; $60$ day forward rate $1=$ CDN$ $1\mathrm{.}48$

Spot rates:

December $1,$ Year $6$

December $31,$ Year $6$

February $28,$ Year $7$

$1=CDN$$$1\mathrm{.}48$

$1=$ CDN$ $1\mathrm{.}49$

$1=CDN$$$1\mathrm{.}53$

Required:

Provide all of the necessary journal entries to record both the account payable and the hedge $($use a journal entry to record the hedge$).$ Our firm records the

hedge at inception.